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Getting charged with mortgage fraud can feel like your life is falling apart. Whether you were buying a house or refinancing one, being accused of lying on mortgage paperwork may result in serious federal charges. And it doesn’t just affect you – it can drag in your real estate agent, the person who valued your house, and others who helped with the paperwork.

Here’s something most people don’t know: Many mortgage fraud cases start with honest mistakes, not actual crimes. Maybe someone got confused filling out the complicated forms or didn’t understand what income they needed to report. The scary part is that prosecutors may view mistakes as criminal plans, turning errors into serious criminal charges.

If you’re facing mortgage fraud charges in the Houston area, don’t wait to get help. Every day you delay could hurt your defense. Contact an experienced Houston mortgage fraud defense attorney today for a confidential consultation about your case.

What is Mortgage Fraud?

Mortgage fraud involves intentionally misrepresenting or omitting facts on mortgage documents to secure a loan or financial gain. It typically falls into two categories:

• Fraud for Housing: Individuals falsify details like income or employment history to qualify for a loan.
• Fraud for Profit: Professionals, such as loan officers or real estate agents, manipulate the process for financial gain by inflating property values or using “straw buyers.” Both types of mortgage fraud are illegal, regardless of the intent.

Mortgage Fraud charges can be filed in State or Federal Court, depending on the circumstances related to the charges.

Examples of Mortgage Fraud

Mortgage fraud can take many forms, often involving tactics you might not immediately recognize as illegal. Common examples include:

• Falsifying Income or Employment: Submitting fake pay stubs, tax returns, or employment verification to obtain a loan.
• Property Value Manipulation: Inflating property appraisals to increase loan amounts.
• Straw Buyers: Using another person’s identity or credit to secure a loan.
• Equity Skimming: Fraudulently draining the equity from a property, often leaving the homeowner in financial ruin.
• Foreclosure Rescue Scams: Preying on vulnerable homeowners by offering fraudulent solutions to stop foreclosure while stealing their equity or property.

Legal Penalties for Mortgage Fraud in Texas

In Texas, mortgage fraud is a serious offense with penalties based on the property value or credit amount involved. Under Section 32.32 of the Texas Penal Code, providing false or misleading information to secure property or credit, including a mortgage loan, is a criminal offense. Penalty ranges in Texas are determined by the alleged loss amount.  Penalties include:

• State Jail Felony: $2,500–$30,000; 180 days to 2 years in jail and up to $10,000 in fines.
• Third-Degree Felony: $30,000–$150,000; 2 to 10 years in prison and up to $10,000 in fines.
• Second-Degree Felony: $150,000–$300,000; 2 to 20 years in prison and up to $10,000 in fines.
• First-Degree Felony: $300,000+; 5 to 99 years or life in prison and up to $10,000 in fines.

Convictions also harm credit, reputation, and future opportunities. Seek legal defense promptly.

Defending Against Mortgage Fraud Charges

Facing a mortgage fraud charge doesn’t mean you’re guilty. Some common defenses include:

• Lack of Intent: You didn’t knowingly commit fraud. Errors on a mortgage application, for example, might be unintentional rather than deliberate.
• Involvement of Others: It’s not uncommon for clients to become involved in fraudulent schemes orchestrated by other parties.
• Insufficient Evidence: The prosecution must prove intent and fraudulent activity beyond a reasonable doubt.

Get the Defense You Need from a Houston Criminal Lawyer

Mortgage fraud charges can feel overwhelming, but you don’t have to face them alone. Robert Fickman is a trusted Houston criminal lawyer with 40+ years of experience handling high-stakes cases. His proven approach focuses on challenging the evidence, identifying weak points in the prosecution’s case, and ensuring your rights are upheld at every turn.

With a reputation for aggressive defense and a deep understanding of Texas and Federal criminal law, Robert Fickman has successfully helped clients fight complex financial crime charges. His dedication ensures every case is thoroughly examined, giving you the best chance to protect your rights and your future. Call Robert J. Fickman Criminal Defense firm at 713-655-7400 or contact him online to schedule a consultation.