Mortgage fraud may be committed in many ways; perhaps by a single person or sometimes by a large number of individuals who are involved in the entire mortgage process.
The most common examples of mortgage fraud as relates to individuals concern the following issues: (i) house flipping; (ii) acting as a straw buyer; (iii) misreporting income on a mortgage application; (iv) falsifying information on a mortgage application; (v) failure to truthfully record a primary residence; and (vi) over estimating the value of the home during appraisal.
In either instance, mortgage fraud is considered a white collar crime. A San Francisco white collar criminal lawyer will inform you that as most mortgages are federally insured, the person or people accused of mortgage fraud will be prosecuted at the federal level. Potential penalties upon conviction include a prison sentence, a fine, which may be based upon the value of the mortgage in question, or both.
It is important to understand that an allegation of mortgage fraud is a lengthy process that is initiated well before an actual criminal charge is filed. Should you believe you are subject to such an investigation, you should contact a San Francisco white collar criminal lawyer immediately to best preserve your rights.