Mortgage Fraud

Las Vegas Mortgage Fraud Lawyers: Learning the Charges and Penalties (NRS 205.372)

Mortgage fraud is often in the news in Nevada because of the economic downturn and loss of value in many people’s homes.

Mortgage fraud involves many different activities in Nevada, all for the purpose of using deception to secure a mortgage from a bank or other financial institution when one would otherwise not be given.

For example, this can include the actions of a loan officer to assist a person who does not qualify in getting a loan.

Fraud usually results from using falsified documents or providing false or incomplete information on a mortgage application. The purchaser, inspector, and even real estate agent can be responsible for mortgage fraud. Each separate transaction is its own crime.

As with any Nevada crime, the best person to defend you is a skilled and experienced Las Vegas mortgage fraud lawyer who can assess your case. A criminal lawyer at LV Criminal Defense will provide a complete defense strategy to reduce the mortgage fraud charges against you or even get them dismissed.

What are the most common mortgage fraud activities in Nevada ?

The top three most common mortgage fraud activities in Nevada are:

• Fake mortgage loan modifications: Private companies will contact homeowners who are behind on their payments and falsely promise to refinance at better interest rates, lower the principal loan balance owed, and other methods which are supposed to help the homeowner avoid foreclosure. These companies are not affiliated with the lender and despite charging high fees upfront, do not (and usually cannot) provide any relief to the homeowner. Scams like these are illegal and have been the subject of many consumer alerts by many private and public consumer protection agencies. If you have been accused of this crime, contact a lawyer to level the playing field. Law enforcement has an interest in appearing tough on these crimes, which means they are ripe for misconduct.
• Providing false or fake information to complete a loan application and get a mortgage: This can be done by a homeowner who is trying to get a loan or a loan officer who wants to complete a mortgage to earn a commission. Many people are surprised to learn that this is a type of criminal behavior, rather than simply a civil fraud. In reality, it can result in jail time and other penalties if you are caught.
• Fraudulent appraisals: An appraiser may accept a bribe to artificially inflate the value of a home to support a larger loan than would otherwise be available.

While these are the most common activities involved in Las Vegas mortgage fraud, the statute applies to people who use any false information (or who conceal material information) to obtain a mortgage.

What is the penalty for mortgage fraud in Nevada?

Mortgage fraud is a Category C felony, which means prison time of up to 10 years in a Nevada prison and $10,000 in fines.

If the state can prove a pattern of mortgage fraud by a responsible individual, the crime increases to a Category B felony with 3 to 20 years in Nevada prison and $50,000 in fines.

Victims of mortgage fraud are entitled to restitution by a person convicted of the crime. For example, this may include repayment of fees associated with a false loan modification program.

Resources on Mortgage Fraud

Nevada Attorney General Adam Paul Laxalt – Mortgage Fraud Unit
555 E. Washington Avenue, Suite 3900
Las Vegas, NV 89101
Telephone: 702-486-3420

FBI – Financial Institution/Mortgage Fraud

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