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Residential Mortgage Fraud In The Fourth Degree: New York Penal Law 187.10
Mortgage laws are strict, and they’re being made even stricter following the economic crash of 2008. Banks and lenders spent too much time, effort, and money issuing loans to residents who could not afford to pay them back, and the laws have become far stricter in an effort to prevent this problem from occurring yet again. In light of new laws and restrictions placed on mortgages, many people find that they can no longer afford a mortgage that allows them to purchase the home they want. This means some people are saving longer, looking for more down payment assistance, and some people are even taking the time to defraud their mortgage lender.
Residential mortgage fraud in New York does happen. It occurs when someone in need of a mortgage provides false information to a lender in an effort to secure a loan they might not be able to afford. There are several different types of mortgage fraud broken down by degree. Residential Mortgage Fraud in the Fourth Degree is a serious crime in New York.
Residential Mortgage Fraud in the Fourth Degree
While it’s considered a low-level felony compared to other types of felonies in New York, this is a very serious crime. Being charged with this type of felony not only results in many years in jail, it also results in the long-term consequences that affect your ability to get a job that pays well, to care for your family, and even affect your future. Your family might decide to leave, you might not be able to get work in any capacity in the future, and you might lose your home.
When you commit this crime and are convicted of it, you face anywhere from one to four years in prison. There is always a chance you could be released on good behavior, you can earn time, and you can serve time less than the full sentence for various reasons. However, you will always have a felony conviction on your record and in your background history, which means your entire future is challenged.
Now that you know what you might face if you’re caught engaging in residential mortgage fraud in the fourth degree, you must know what it means and how you become involved in a crime like this one. It’s a simple crime. You provide false information and the documentation to prove it when submitting a mortgage application. It doesn’t typically happen with an actual mortgage, but it does happen more often with a home equity line of credit or with a refinance situation. You must receive at least $1,000 but no more than $3,000 from the bank with this kind of false information.
When you apply for the mortgage and you make false statements that allow you to borrow at least an additional $1,000 but no more than $3,000, you are guilty of this crime. It’s possible this lie and this intentional act of defrauding the lender could happen when you buy a home. You add a few dollars to your income so you can borrow a few thousand extra dollars to get the house you want, and you suddenly face criminal charges and a felony arrest.
If you’re caught doing this, you could be arrested. You’re then charged with the crime, taken to jail, released on bail, and you face a hearing. You must call an attorney to help you with this or you face a lot more trouble while the case in ongoing. An attorney can help you argue you didn’t know what you were doing or what you were submitting when you did it. You could have your attorney help you prove you didn’t realize you were committing a crime. Perhaps you didn’t understand the instructions on the application.
Your attorney can help you figure out how to defend yourself in a situation like this one, and it might be the way you must go to help your case. If you’re found guilty, you could go to jail. It’s not worth taking the time to defend yourself with your entire future in question. If you did not commit this crime knowingly, it’s time to hire an attorney. Your attorney can answer your questions, help you understand what’s happening, and he or she can fight for your rights in court.
Residential mortgage fraud in the fourth degree can change your life forever if you’re convicted, which is why you must take the time to avoid this conviction. Submit only information you know to be true, and consult with an attorney if you are arrested for this crime. An attorney can help you figure out how to protect yourself and potentially get off with a lesser charge when your trial occurs.