Wednesday, June 25, 2008

Federal Criminal Conduct with Regard to Mortgage Loans

A review of recent federal indictments provides a overview of some of the types of conduct in the mortgage origination process that may be regarded as criminal.

Materially false and fraudulent mortgage loan applications and related documents such as the uniform residential loan application

False employment verification

False verification of income and funds on deposit

False rent verification

False assertions such as living in the property as a primary residence

False assertions of amount of funds on deposit in the bankStraw buyer and identity theft

Concealment of material information

Misrepresentation of price

Concealment of "kicker fees"

The following are some of the federal statutory provisions that may be involved:

18 U.S.C. 1343 - wire fraud

18 U.S.C. 1344 - financial institution fraud

18 U.S.C. 1349 - conspiracy to commit wire and financial institution fraud

18 U.S.C. 1028 (A)(1) and (2) - aggravated identity theft

19 U.S.C. 981, 982, and 21 U.S.C. 853 - forfeiture

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