Skip to main content
Edit PageStyle GuideControl Panel

Mortgage Fraud

Atlanta Mortgage Fraud Defense Attorneys

Mortgage fraud in Atlanta, Georgia is a serious offense that can be punishable by substantial fines and jail time. If you are facing charges for involvement in a mortgage fraud scheme, be sure you have strong representation from a qualified Georgia mortgage fraud attorney.

At the criminal defense law firm of Garland, Samuel & Loeb, we represent clients in a broad range of state and federal mortgage fraud cases, including filing fraudulent loan applications or documentation, procuring or submitting fraudulent appraisals, and many others. Our clients have included buyers, appraisers, real estate brokers and mortgage company representatives.

Contact our office today to discuss your mortgage fraud case. Following your first free consultation, our mortgage fraud lawyers can provide the legal advice you need to start fighting these charges in state or federal court. We are available during regular business hours and by appointment at other times.

What Is Mortgage Fraud and Types of Mortgage Fraud

Mortgage fraud is a broad category of crimes rather than a charge, and there are both state charges and federal charges. If you are accused of being part of a mortgage fraud scheme, you may be charged for committing any of the following acts:

  • Fraudulent loan applications or documentation

  • Fraudulent sales contracts

  • Fraudulent representation of financial information

  • Procuring or submitting fraudulent appraisals


State crimes like residential mortgage fraud are covered by the 2022 Georgia Code Title 16. You are considered to commit this offense if you:

  • Knowingly make any deliberate misstatement, misrepresentation, or omission during the mortgage lending process with the intention that it be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process;

  • Knowingly use or facilitate the use of any deliberate misstatement, misrepresentation, or omission, knowing the same to contain a misstatement, misrepresentation, or omission, during the mortgage lending process with the intention that it be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process;

  • Receive any proceeds or any other funds in connection with a residential mortgage closing that such person knew resulted from a violation of paragraph (1) or (2) of this Code section;

  • Conspire to violate any of the provisions of paragraph (1), (2), or (3) of this Code section; or

  • File or cause to be filed with the official registrar of deeds of any county of this state any document such person knows to contain a deliberate misstatement, misrepresentation, or omission.

This is just one example of mortgage fraud that can be prosecuted in the state of Georgia. There are also federal criminal charges that apply to some mortgage fraud schemes. 18 U.S. Code § 157 makes it a crime to engage in any scheme to defraud during the mortgage application process.

If you are convicted of mortgage fraud, you can face sentences as severe as 20 years in prison, $5 million in fines, and confiscation of your properties. Probation is rarely offered for these federal charges, and sentencing guidelines may require you to serve years before you are eligible for release.

You should always take charges like this very seriously. A lawyer will help you understand how to fight back.

How Our Legal Team Can Support You Through Fraud Charges

Our attorneys have extensive experience in mortgage fraud cases. When you hire our team, we conduct a complete investigation of your case and review all the evidence against you.

Mortgage fraud cases frequently hinge on several key issues. When the government believes a misrepresentation was made in a loan application, we work to demonstrate that the statements were true and correct. When the case turns on the accused party’s intent, we present the strongest possible argument that you acted in good faith and had no intent to break the law.

When the prosecution takes the position that the accused played a major role in committing the fraud, we work to demonstrate that you were an unknowing participant in the mortgage fraud scheme. Regardless of the allegations or the strength of the Government’s case, we always fight to obtain the best possible resolution on your behalf.

Contact Our Team of Mortgage Fraud Defense Lawyers

If you are charged with mortgage fraud under state or federal law, you should contact our experienced attorneys. This type of fraud is one of the core practice areas of our law office. We have assisted our clients with this and similar charges, such as mortgage loan fraud and bank fraud.

We’ll support you throughout your case as Atlanta’s mortgage fraud firm. We believe in a strong attorney-client relationship and that everyone deserves to be considered innocent until proven guilty. Get started using our mortgage fraud case contact form.

What is the Mortgage Fraud Act in Georgia?

Competent counsel will fight every aspect of the prosecution: the defense may insist that the mortgage application was accurate, or that the broker informed the borrower that insistence on meticulous accuracy was not necessary; or that any error in the application did not affect the lender’s decision to fund the loan. the amount of “loss” suffered by the lender is also frequently disputed.

There was a time after the financial crisis that began in 2008 that there were many mortgage fraud prosecutions because of the number of defaulted loans and the bank practices (and brokers’ practices) that were very lax (in part because the lenders were selling the loans and did not monitor the borrower’s background or applications with sufficient care). Because of the substantial losses that resulted from these lax practices, the lenders are now far more careful about the loans that are made and consequently, fewer fraudulent loans occur and fewer criminal prosecutions.

If the person is convicted of mortgage fraud, the sentence (in federal court) will often depend on several factors: (1) what was the amount of the loan; (2) has the defendant defaulted on the loan, or is the loan current; (3) does the defendant have a criminal record. the same considerations will usually apply in state cases, though with less formality and certainty.

FHA mortgage fraud is the same as other types of mortgage fraud, except the lender (the bank) may have used the FHA process to further support the loan (that is, the bank will look to the federal government to back up the loan in case the borrower defaults)

There are several different ways in which the offense of mortgage fraud can be committed, but the most common is providing inaccurate information to the lender about the borrower’s assets, income, employment, or the appraisal on the property. These types of misrepresentations are “material” to the lender’s decision to loan the money, so those types of misrepresentations, unless trivial, will support a mortgage fraud prosecution.

"Mortgage shotgunning" or "mortgage slamming" occurs when a person takes out multiple loans secured by the same home or piece of property. The object of this fraud is often to gain loans that exceed the property's value by a significant amount.

You may be found to be engaging in a pattern of residential mortgage fraud if you make

“One or more misstatements, misrepresentations, or omissions during the mortgage lending process involving two or more residential properties with the same or similar intents, results, accomplices, victims, or methods of commission or otherwise are interrelated by distinguishing characteristics.”

The Georgia Mortgage Fraud Act is codified at OCGA §16-8-100. It primarily criminalizes deliberate misrepresentation or fraud in mortgage lending processes. Key prohibited acts include:

Making deliberate misstatements, misrepresentations, or omissions during the mortgage lending process with the intent to defraud
Receiving proceeds or any other funds in connection with a mortgage fraud scheme
Filing or causing to be filed with the official registrar of deeds any document that contains deliberate misstatements, misrepresentations, or omissions
Participating in a pattern of residential mortgage fraud (defined as involving two or more properties)

The Act defines "mortgage lending process" broadly to include:

The solicitation, application, origination
The making of a mortgage loan
The underwriting, signing, closing and funding of a mortgage loan
The recording and releasing of liens
The servicing of a mortgage loan

Violations can result in serious criminal penalties, including:

Imprisonment for 1-10 years
Fines
Restitution to victims

The FBI is often the law enforcement agency that investigates mortgage fraud, but it is also possible that the IRS criminal division, or Secret Service will also investigate these types of financial crimes.

Often mortgage fraud is committed by brokers, as opposed to the actual lender. Other than that, most mortgage fraud prosecutions involve borrowers.

The GBI is the principal investigative agency in Georgia.

Trusted for our Experience. Known for our Success

Visit UsGSL-Law-Popup-Map

When you hire the law firm of Garland, Samuel & Loeb, you can rely on us to do everything in our power to reach the best possible outcome in your case. Whether you have suffered a serious injury in an accident or are facing criminal charges, our attorneys will fight to see that your rights are protected from the start.  

There are several ways to contact us.

  • Chat: Click on the Chat shown on the bottom right of your screen;
  • Form: Fill out the appropriate contact form linked below;
  • Phone: Call us at (404) 262-2225. 

Whichever method you choose, a team member will be in touch with you soon. 

New Criminal Case Inquiry Form
New Civil Case Inquiry Form
General Inquiry Form

Garland Law Building | 3151 Maple Drive, N.E. Atlanta, GA 30305 | (404) 262-2225 (Phone) | (404) 365-5041 (Fax)