Mortgage Fraud & Subprime Lending Fraud

6060 N. Central Expressway Suite 524 Dallas, TX (214) 884 3404

   Since the collapse of the housing market in 2008, the state and federal authorities have taken an aggressive approach to investigating and prosecuting suspected mortgage fraud and sub-prime lending fraud. According to the FBI, Texas is a prime target for mortgage fraud investigations and prosecutions. Similarly, the Texas Attorney General has organized a Mortgage Fraud Task Force to further investigate and prosecute schemes in Texas.

   A charge of mortgage fraud or subprime lending fraud can take on many facets. The fraud can involve the:

  • overestimation of value (i.e. false appraisal)
  • the false reporting of assets (i.e. lying about the borrower's income on the loan application
  • the failure to disclose assets
  • purchases through straw buyers
  • kickbacks
  • house flipping in which the appraisal is inflated
  • inflated appraisal of home value, deflated appraisal of property
  • failure to disclose primary residence

   Each of these types of fraud can involve many different players in the mortgage process: the appraiser, the real estate agent, the real estate lawyer, the builder, the broker, the lending company and the borrower.

   In state court, the charged offenses may be:

  • misapplication of fiduciary property TEX. PENAL CODE 32.45
  • securing execution of document by deception TEX. PENAL CODE 32.46

   In federal court, the charged offenses may be:

  • conspiracy 18 U.S.C § 371, 1349
  • fraud and false statements 18 U.S.C § 1001
  • mail fraud 18 U.S.C § 1341
  • bank fraud 18 U.S.C § 1344
  • wire fraud 18 U.S.C § 1343

   When facing a mortgage fraud charge, hiring a dedicated lawyer sooner rather than later is a positive step in the right direction. Remember, often the authorities have been investigating the case for several months (perhaps even years) putting you and your defense team at a disadvantage which only a dedicated lawyer can correct.

   As a lawyer representing a client charged with mortgage fraud or sub-prime lending fraud, it is imperative that I re-create and re-investigate the mortgage process from beginning to end. This may involve hiring a certified fraud examiner to review all the mortgage documents. Additionally, working with a fact investigator to interview the people involved in the mortgage process can prove effective.

Further References:

Contact Adrienne Dunn regarding your mortgage fraud or lending fraud.