Dallas Mortgage Fraud Attorney

Defending Mortgage Fraud Charges Throughout the State of Texas

Mortgage fraud is a serious allegation that can carry significant penalties at both the state and federal levels. If you are under investigation or facing charges, you need an experienced Dallas mortgage fraud lawyer to protect your rights and build a robust defense. At the Law Office of Patrick J. McLain, PLLC, we are committed to providing skilled legal representation to clients throughout Dallas, TX, and the surrounding areas.

Call (214) 238-9392 or contact us online today to let our team defend you against serious allegations.

What is Mortgage Fraud?

Mortgage fraud refers to any intentional misrepresentation, omission, or deceitful act made to secure a mortgage loan or to profit from a mortgage transaction. This type of fraud can involve individuals, lenders, or real estate professionals and may occur during the application, underwriting, or closing process.

Mortgage fraud is typically classified into two categories:

1. Fraud for Housing: This occurs when an individual misrepresents their financial situation to obtain or maintain a home loan.
2. Fraud for Profit: This is usually carried out by industry insiders and involves schemes to gain financial benefit, such as inflating property values or pocketing loan proceeds.

Understanding the type of fraud alleged is critical to developing a solid defense strategy.

Common Types of Mortgage Fraud

Mortgage fraud can take many forms, but some of the most common types include:

• Income Fraud: Falsifying income documentation to qualify for a loan.
• Occupancy Fraud: Claiming a property will be owner-occupied when it is intended as an investment or rental property.
• Appraisal Fraud: Inflating or deflating property values to manipulate loan approvals or terms.
• Equity Skimming: Using a straw buyer to secure a mortgage and then draining the equity without making payments.
• Straw Buyer Schemes: Using someone else’s identity or credit to obtain a loan.
• Foreclosure Rescue Scams: Exploiting homeowners in financial distress by promising to prevent foreclosure while pocketing their money.

If you’ve been accused of participating in any of these activities, a knowledgeable Dallas mortgage fraud lawyer can help you understand your options and craft a tailored defense.

State & Federal Penalties for Mortgage Fraud

In Texas, mortgage fraud can be prosecuted under state and federal laws, depending on the circumstances. Penalties for mortgage fraud are severe and can include:

State Penalties:

Under Texas Penal Code § 32.32, fraud related to real estate transactions can lead to felony charges, with penalties such as:

• Fines: Up to $10,000.
• Imprisonment: From six months to life in state prison, depending on the value of the fraud.

Federal Penalties:

Mortgage fraud is also a federal crime under statutes like the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). Federal penalties may include:

• Fines: Up to $1 million.
• Prison Time: Up to 30 years in federal prison.
• Restitution: Repayment of financial losses to affected parties.

A conviction for mortgage fraud can also lead to long-term consequences such as damaged credit, loss of professional licenses, and a tarnished reputation.

Common Legal Defenses to Mortgage Fraud

Facing mortgage fraud charges can be overwhelming, but there are several potential defenses that can be raised. At the Law Office of Patrick J. McLain, PLLC, we carefully evaluate the details of your case to determine the most effective defense strategy. Common defenses include:

• Lack of Intent: Mortgage fraud requires intentional deceit. If you made an honest mistake or were unaware of the false information, this could be a strong defense.
• Insufficient Evidence: Prosecutors must prove every element of the crime beyond a reasonable doubt. If evidence is weak or improperly obtained, it may be challenged.
• Duress or Coercion: If you were forced or pressured into committing fraudulent acts, this defense could apply.
• Mistaken Identity: Fraud schemes often involve multiple parties, and it’s possible you were wrongly implicated.
• Statute of Limitations: If too much time has passed since the alleged fraud occurred, charges may be dismissed.

Our team works diligently to uncover any weaknesses in the prosecution’s case and advocate for the best possible outcome for our clients.

Why Choose the Law Office of Patrick J. McLain, PLLC?

When facing mortgage fraud charges, experience matters. Attorney Patrick J. McLain is a former federal prosecutor with decades of legal experience. His deep understanding of both sides of the courtroom allows him to anticipate the prosecution’s tactics and build a strong defense tailored to your unique situation.

Our firm is dedicated to:

• Thorough Investigation: We leave no stone unturned in gathering evidence and uncovering the facts of your case.
• Clear Communication: We keep you informed every step of the way, so you always understand your rights and options.
• Aggressive Representation: Whether negotiating with prosecutors or advocating in court, we fight tirelessly to protect your interests.

Let a Dallas mortgage fraud attorney from the Law Office of Patrick J. McLain, PLLC, fight for you. Contact us today at (214) 238-9392 to schedule a consultation.