What is the penalty for mortgage fraud, particularly if a home owner falsifies income on a loan and then that?

It's a felony with possible jail time. But if you are making payments on time no one will press charges if that's all you did.What is the penalty for mortgage fraud, particularly if a home owner falsifies income on a loan and then that?
Mtg fraud is a very serous crime. This is a Federal crime that caries a max of 30 years in prison and $1,000,000 fine. To make it worse once the docs are transferred and the money for the loan it wired transferred to the escrow company it becomes wire fraud. The FBI considers this top priority along with Home Land Security. They are putting Mtg brokers, RE Agents, Appraisers and Home owners in prison for Mtg fraud. This is no joke. Due to the amount of foreclosures, the Feds are checking home loans very closely. They don't even need a court order to tap a phone or read emails because this falls under home land security. It can be the homeowner or LO stating higher income, stating primary residents when it was a rental, the appraiser over valuing a property, commission income when it was a bonus income. Agents and homeowners raising the list price of a home to cover the down payment, any type of kick back. Even if you did not do it but know about it and don't report it you can go to prison. Be afraid if you have committed fraud, because they will get you.What is the penalty for mortgage fraud, particularly if a home owner falsifies income on a loan and then that?
PRISON time...and serious prison time at that.





However, it's pretty hard to falsify income when you have to produce 30 days of paystubs (where employment is verfied as well as income with HR) and tax records (when banks order an IRS transcript to make sure what you filed with the gov't matches what you gave to the bank).





Very, very hard.





Do you REALLY think that banks don't verify income or that they just take your word for it?
do not tell them how much you make go stated stated so you dont have to say how much you make and they go of how much your annual salary is. say your self employed and your income varies and they cant do ****


ps suntrust mortgage is good about them refi with them if your going to
They take your house , because obviously you wont keep the payments up ,because you couldnt afford it in the first place,thats why you gave a false application , its not worth it
Fraud is a form of theft.





The nature of penalty depends on the extent of the fraud and how much the bank was cheated out of.





Probably about 5 years in prison.