Melissa asks,

“What are the penalties for lying on a mortgage or refinance application? Claiming that you are married…when you are not. What if the ex-wife forges the signature? What are the ramifications?”

Lying on a Mortgage Application

My answer:

Falsifying information on a mortgage application is a form of mortgage fraud. You must know the application contains language you are agreeing to at signature and that language outlines the penalty for providing false information.

Here is the germane portion:

“Each of the undersigned specifically represents to Lender and to Lender’s actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.;”

Folks applying for a mortgage are affirming they are providing truthful information and any “intentional or negligent misrepresentation” could be actionable including a civil or criminal charge which if convicted can carry “criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq”.

Yikes!

I looked up the Title 18, United States Code, Sec. 1001, et seq…that part that further describes exactly what constitutes falsifying information and the penalties:

“…a) Except as otherwise provided in this section, whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully-
(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
(2) makes any materially false, fictitious, or fraudulent statement or representation; or
(3) makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry;

shall be fined under this title, imprisoned not more than 5 years or, if the offense involves international or domestic terrorism (as defined in section 2331), imprisoned not more than 8 years, or both. If the matter relates to an offense under chapter 109A, 109B, 110, or 117, or section 1591, then the term of imprisonment imposed under this section shall be not more than 8 years. …”

So to answer your question, you can go to jail if convicted for unto 5 years and have to pay fines as well.

So don’t lie to get a mortgage!

Thanks for the question…

Previous Post:«

Next Post:»

Tags: • •