Mortgage fraud can include actions such as identity theft used to secure a home loan, inflated property appraisals, and false information on mortgage applications. Selling a home to a straw buyer who releases property rights also constitutes fraud. Conviction for these crimes often results in several years in jail and substantial fines. Consult a Texas mortgage fraud defense lawyer as soon as possible if you face these charges at the state or federal level.
Advice From Your Mortgage Fraud Defense Lawyer About Criminal Penalties and Mitigation
Texas Penalties for Mortgage Fraud
The state imposes mortgage fraud charges for crimes resulting in $2,500 or more in credit or property value. You can receive a state jail felony for fraud valued at $2,500 to $30,000. Penalties for this type of offense include a fine of up to $10,000 along with 180 days to two years in state jail.
Fraud from $30,000 to $150,000 results in third-degree felony charges. Fraud valued at $150,000 to $300,000 is a second-degree felony, which can result in two to 30 years in prison and a $10,000 fine. Fraud of more than $300,000 constitutes a first-degree felony. Penalties include five years to life in prison and a fine of up to $10,000.
Federal Penalties for Mortgage Fraud
Mortgage fraud at the federal level carries more severe penalties than state conviction. According to the U.S. Sentencing Commission, 74.1% of people convicted of mortgage fraud in 2021 served time in federal prison, with an average sentence of 14 months. Visit this page to learn more about how hiring an attorney can help you defend yourself against these serious allegations.
Civil Consequences for Conviction
In addition to criminal penalties, the mortgage lender or bank can file a civil suit against you. A successful claim can result in tens of thousands of dollars in fines for breach of contract, conspiracy to defraud the lender, deceit, and misrepresentation.
Mitigating and Aggravating Factors for Sentencing
In USSC data for 2021, 5.8% of federal mortgage fraud offenders received decreased sentences. The court found that these individuals had minimal participation in the offense. Other mitigating factors can include age, lack of a prior criminal record, developmental disability, or extreme physical and mental state during the period when the fraud occurred.
Defendants can also avoid aggravating factors that increase your sentence. According to the USSC, more than 29% of 2021 offenders received elevated consequences because they used sophisticated methods to hide the crime. More than 17% were in a public position of trust. Nearly 14% received a longer sentence because they had a supervisory or primary role in the crime, and about 7% because of the number of victims or the extent of harm.
Understanding the penalties and mitigating factors can help you plan your next steps when you face mortgage fraud charges. An experienced criminal law attorney provides the advice and support you need throughout the process. They have the necessary knowledge to strategize about an appropriate defense in your case.
