What is Mortgage Fraud?
Mortgage fraud is a term used to describe a broad variety of actions where the intent is to materially misrepresent information on a mortgage loan application, in order to obtain the loan. Mortgage fraud is not to be confused with predatory mortgage lending.

Examples of Mortgage Fraud:
Occupancy fraud: Frequently this is seen where the borrower wishes to obtain a mortgage to acquire an investment property, but instead the borrower claims on the loan application that they will occupy the property as their primary residence or second home. If undetected, the borrower typically obtains a lower interest rate than was warranted.

Employment/income fraud: Borrowers may overstate income in order to qualify for a larger loan amount. This is most often seen with so-called "stated income" (popularly referred to as "liar loans") mortgage loans, where the borrower declares their income without verification.

Failure to disclose liabilities: Borrowers may conceal obligations, such as mortgage loans on other properties or newly acquired credit card debt, in order to reduce the amount of monthly debt declared on the loan application and allowing the borrower to qualify for a bigger loan.

Appraisal fraud: If a home's appraised value is deliberately overstated, more money can be obtained by the borrower in the form of a cash-out refinance or obtained by the seller in a purchase transaction.

Cash-Back Schemes: The buyer and seller or the buyer and real estate agent collude to deceive the lender as to the true sale price of a property. The seller or the real estate agent gives the buyer a cash rebate which is not disclosed to the lender. As a result the lender lends too much, and the buyer and/or seller pocket the overage.

Shotgunning: When a person takes out multiple loans for the same home simultaneously the term is shotgunning.

Identity Theft: When a person assumes the identity of a home owner and takes out a mortgage on their property.

Do I need a lawyer to represent me if I am innocent?
Every criminal defendant needs an attorney. Innocent defendants are perhaps in even greater need of zealous representation throughout the criminal process to ensure that their rights are protected.

Do I need a lawyer if I simply intend to plead guilty ?
You may not understand the full implications of the crime with which you are charged. Criminal defense attorneys equalize the balance of power between the defendant and the prosecution and ensure that the constitutional rights that are guaranteed to all criminal defendants are preserved.

Kuniansky & Associates
The Lyric Centre
440 Louisiana , Suite 200
Houston, Texas 77002
Office: 713-622-8333
Fax: 713-224-2815