Mortgage Fraud for Profit
Fraud for profit charges arise when a lender is said to have been defrauded by multiple parties, including mortgage lending professionals. This category of mortgage fraud encompasses the following:
The goal of fraud for profit is to obtain an inappropriately large loan, even though this type of mortgage often goes into default. Fraud for profit is distinct from fraud for housing insofar as the people involved never intend to live in the property at stake.
Mortgage Fraud for Profit is Most Often Thought to Include a Coordinated Attempt by the Following:
An appraiser who overstates a property's value;
A settlement agent who makes disbursements from a loan without disclosing those amounts on the settlement statement, or prepares two sets of HUD settlement statements;
A "straw buyer's" credit report; and,
A property owner
Fraud for profit may also occur without a "straw buyer", with an organizer instead appealing to investors with promises that a property will be repaired, mortgage payments made, tenants located, and profits split upon the sale of that property. When an "organizer" does not make good on their promises, the investors are held responsible for a mortgage.
Fraud for profit can be difficult to define. Nonetheless, according to the FBI, Mortgage Fraud is one of the fastest growing white collar crimes in the United States.
The FBI also reports that industry insiders collaborate or collude in 80 percent of all reported mortgage fraud losses. However, when it comes to alleged mortgage fraud, it can often be difficult to determine what is fraudulent activity and what is healthy real estate market competition.
Are you facing accusations of fraud for profit and/or a federal investigation? If left unchecked, these allegations can possibly lead to prison sentences and substantial compensatory and/or punitive monetary damages.
Contact our white collar attorneys by calling 888-984-5579 . Your initial consultation is both free and confidential.