In 2010, Minnesota was found to be a mortgage fraud hotspot, and the legislators of this state cracked down hard in response, making an effort to catch as many people they thought were committing fraud as possible. That scrutiny is still there, and it can be easy to fall under suspicion. Here is what you need to know when that happens to you.
What Is Mortgage Fraud?
Minnesota Statute defines this as deliberately misrepresenting something important during the process of getting a mortgage when you know that the other party will rely on your information. It can also mean using materials with misstatements or making the use the materials with misstatements possible when the other party needs the correct information.
The FBI further breaks this into two categories. There is fraud for profit, which is when loan companies use their position to make extra money off of loans. Then there is fraud for housing, which is when people applying for loans misrepresent themselves to get a loan.
Let’s put that in more concrete terms. What might a material misstatement be? It could involve lying on a loan application.
The most common type of this fraud for housing is making up sources of income so that it looks like someone qualifies for a loan when they don’t. Another type is claiming that the home they are buying is where they will live when they really intend on renting it out and using it as a vacation home. It might also involve getting a third person who is qualified for the loan to apply on a person’s behalf and then, when the loan goes through, the third person transfers it to the real occupant.
Loan officers could stretch the truth to make a loan more attractive or get kickbacks for approved mortgages.
Penalties A Convicted Person Could Face
How much conviction will hurt financially will depend on how much the victim lost in total. When the other party loses more than $35,000, the fine can be up to $100,000. The fine for fraud that takes more than $5000, the fine will be up to $20,000. You can be ordered to pay restitution on top of the fine, and you can spend up to two years in jail.
Worse is that there is a clause in the 2020 Minnesota Statutes that could make the penalties that you could receive harsher. Courts are allowed to make an ‘aggravated departure’ under the sentencing guidelines if they think you knew the victim of the mortgage of the fraud was particularly vulnerable. Their definition of vulnerable includes people who would struggle because of their age, state of health, or lowered physical or mental capacity.
An aggravated departure means that the prosecution submits a departure report and asks to ignore the sentencing guidelines. They can then convince the jurors to increase the penalties beyond what the guidelines allow. You would then have to make the argument in court that you don’t deserve the extra punishment at the sentencing hearing.
When To Get A Lawyer
Mortgage fraud can be easy to commit without really intending to, but the courts have to be convinced that it was a mistake. You need a lawyer who knows the intricate details of fraud law both at the federal and at the state level as soon as the accusation has been leveled so the attorney can start work on a good defense. Fortunately, DeVore Criminal Defense has plenty of expertise in this area and the commitment to doing their best by their client. Contact us for a free initial consultation if you or someone you love has been accused of mortgage fraud.
Posted 30th April 2021 by DeVore Law Office