On Thursday, a federal grand jury indicted New York Attorney General Letitia James in Virginia federal court with charges related to fraud.
Two sources confirmed to Fox News that the charges were related to potential mortgage fraud.
This is a breaking news story. Please check back for updates.
I work in the real estate title insurance business. MORTGAGE FRAUD is BIG, ENFORCEABLE AND HUGE PENALTIES including JAIL.
I underwrite policies and am also a Notary Closer who has closed 1000s of real estate loans over the last 25+ years. The mortgage documents are VERY specific as to use of property : PERSONAL, PRIMARY RESIDENCE (where you live full time) and NON=OWNER OCCUPIED – (investment property, rental property, 2nd home, WHERE YOU DO NOT LIVE FULL TIME.
It is a federal offense as most mortgages are federally backed. if you LIE you can go to jail, have your mortgage foreclosed, up to 30 years in jail and up to $1 MILLION in fines.
Plus, if you wired your funds to closing _ WIRE FRAUD, mailed it in MAIL FRAUD etc
Falsifying or intentional misrepresentation are all a part of the FRAUD. Such as the purpose of the loan – to refinance a property you claimed as your primary residence in order to obtain a lower owner-occupied interest rate.INTENTIONAL deceit.
HUD, DOJ, IRS and FBI all can investigate
As Notaries, we take care to make sure a borrower fully understands the documents they are signing. IF they don’t we call their loan officer on the spot.
HOWEVER, there is a specific doc that requires notarization that the purpose of the loan is for owner occupancy. Otherwise, the bank sends docs that are SPECIFIC TO INVESTMENT property.