As the country’s housing market becomes increasingly convoluted, the risk of mortgage fraud allegations, whether through genuine mistakes or misinterpretations, grows. For those accused, addressing these charges requires a mortgage fraud attorney who understands the inherent weaknesses in these kinds of investigations well enough to employ effective defense strategies.
What Are the Common Defenses Against Mortgage Fraud Charges?
1. Conducting Interviews to Prove Lack of Intent
One of the most potent strategies an attorney can deploy in mortgage fraud cases is to dispute the prosecutor’s claims that the defendant knowingly or intentionally acted in a fraudulent manner. By interviewing loan officers, underwriters, appraisers, and other relevant individuals, it may be possible to establish that the defendant lacked the necessary intent and was instead misled or unaware of their involvement in mortgage fraud.
2. Hiring Expert Witnesses
Mortgage fraud charges can be complex, often requiring expert witnesses who are well-versed in mortgage procedures and financial regulations. One such industry expert might be a forensic accountant, who helps the defense attorney dispute the extent of supposed financial losses and cast doubt on any conclusion reached by the persecutor’s witnesses.
Since property valuation is a critical component of mortgage fraud cases, another key expert witness could be a forensic appraiser. This professional can evaluate the accuracy of the property valuations presented in the case, offer independent assessments, and challenge any inflated appraisals that may have influenced the prosecution’s claims.
3. Challenging the Other Party’s Experts
The prosecution, like the defense counsel, relies on their expert witnesses to strengthen their position. Since these experts offer specialized knowledge, their testimony can significantly affect the outcome of the case. Casting doubt on their qualifications and credibility is therefore crucial in order to sway the case in favor of the accused.
4. Challenging the Search Warrant
More often than not, part of the evidence that the prosecution wishes to introduce in a mortgage fraud case involves items or records obtained as a result of a search warrant. If there are grounds to believe that law enforcement may have gone beyond the appropriate scope of the search warrant, the defense attorney may file a motion to ask the court to disregard the illegally obtained evidence.
5. Examination of the Document by the Mortgage Fraud Attorney
Documents such as the loan application form, HUD-1 (settlement sheet), appraisal reports, Verification of Employment, Verification of Deposit, and Title Opinion are among the most vital pieces of evidence in typical mortgage fraud cases. As such, they are thoroughly examined by the defense attorney and their experts for inaccuracies, inconsistencies, or a general lack of credibility.
6. Establishing a Lack of Material Benefit
To make a successful mortgage fraud case, prosecutors must prove that the accused gained illicit profit from the alleged fraudulent activity. So, by demonstrating the absence of material gain and that any financial benefits were unintended, the attorney effectively weakens the prosecutor’s case. Learn more about how to prove a lack of material gain by reading legal resources.
While mortgage fraud cases carry high stakes, the strategies outlined above can help mitigate risks and increase the likelihood of a favorable outcome.
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