MORTGAGE FRAUD ATTORNEY IN ARIZONA
According to the FBI, mortgage fraud is one of the fastest growing white collar crimes in the United States. A criminal action can be initiated whenever a prosecuting agent believes that a mortgage loan has been obtained by way of false information or concealment of material information. The housing crisis has led to a drastic nationwide increase in mortgage fraud investigations and arrests. Convictions can result in prison sentences as long as 40 years. If you are being investigated or have been arrested for mortgage fraud, it is essential that you retain an experienced mortgage fraud attorney as soon as possible. Investigations are lengthy and complex and each step of the process should be handled by a knowledgeable mortgage fraud attorney. At the Law Offices of Ashley D. Adams PLC, our mortgage fraud attorney in Arizona can provide you with a solid, aggressive defense. Attorney Ashley D. Adams has the experience and skill to ensure that your rights are protected. Call us today for a free case evaluation.
What is Mortgage Fraud?
Mortgage fraud can be defined as misrepresentation with the intent to obtain a more favorable deal on a mortgage. The FBI defines mortgage fraud as “any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.” There are two distinct areas of mortgage fraud that are investigated by the FBI:
- Fraud for housing: This type of fraud consists of illegal actions by the borrower to acquire a home under false pretenses. Often the borrower makes misrepresentations about income or employment history in order to qualify for a loan (or for a higher loan amount). Fraud for housing is almost always charged as a misdemeanor.
- Fraud for profit: This is sometimes referred to as “industry insider fraud.” The goal of fraud for profit is to obtain an inappropriately large loan, even though this type of mortgage often goes into default. The FBI has concentrated most of its efforts on this type of fraud because nearly 80 percent of all reported fraud losses involve collaboration or collusion by industry insiders, such as accountants, appraisers, loan officers, agents, developers, or mortgage title companies.
Types of Mortgage Fraud
Allegations of mortgage fraud can be varied, depending upon the circumstances. Some of the most common types of mortgage frauds include the following:
- Equity skimming involves the use of corporate shell companies, corporate identity theft, and the use or threat of bankruptcy and foreclosure to mislead homeowners and investors.
- Property flipping is the use of identity theft, straw borrowers, shell companies, and industry insiders to purchase properties and artificially inflate their values through false appraisals. The properties are then repurchased several times for higher prices.
- False statements include obtaining a mortgage through misrepresentation of income, employment, residency or other loan information.
- Appraisal fraud consists of actions involving overstatement or understatement of a property’s appraised value.
- Fraud for profit is the use of a credit report from someone (a “straw borrower”) who allegedly purchases property in order to conceal the identity of the real purchaser.
- Identity theft is the fraudulent use of another’s identity to obtain a mortgage without that person’s knowledge or consent.
- Occupancy fraud occurs when a borrower fraudulently obtains a lower interest rate by misrepresenting an investment property as a primary or secondary residential purchase.
- Shotgunning occurs when multiple loans for the same property in excess of the property’s real value are obtained simultaneously.
MORTGAGE FRAUD ATTORNEY
The rapid increase in mortgage fraud has prompted the federal government to aggressively investigate and prosecute alleged mortgage fraud schemes that can involve home buyers, investors, brokers, or other professionals in the mortgage industry. The consequences of a mortgage fraud conviction are severe. If you are being investigated, or have been charged with mortgage fraud, call our office in Arizona today. Ashley D. Adams has significant experience defending clients accused of complex white collar crimes such as mortgage fraud and she will work diligently to ensure that your rights are protected.
