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New Jersey to criminalize mortgage fraud (introduced).

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imhere

Sophomore Member
Joined
Dec 6, 2007
Professional Status
Certified General Appraiser
State
New Jersey
Two New Jersey Assemblyman Paul Moriaty and Assemblywoman Sandra Love, have introduced Assembly bill number 2679, titled “Truth in Mortgaging Act.” This bill would create a crime of residential mortgage fraud.

Link to bill html: http://www.njleg.state.nj.us/2008/Bills/A3000/2679_I1.HTM


The penalties can be substantial:

"This bill provides that a person who commits the offense of residential mortgage fraud is guilty of a crime of the third degree and subject to imprisonment for a term of three to five years and to a fine not to exceed $15,000, or both. The bill also provides that a person who engages in a pattern of residential mortgage fraud is guilty of a crime of the second degree and subject to imprisonment for a term of five to 10 years and to a fine not to exceed $150,000, or both. Each residential property transaction subject to the act shall constitute a separate offense and shall not merge with other crimes. In addition, where an assignment judge determines that the infraction is de minimus, the assignment judge may dismiss the prosecution of residential mortgage fraud."
 

dobie

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
New Jersey
More from the bill specific to appraisals.

A person is guilty of the crime of residential mortgage fraud when, with the intent to defraud, that person:

a. Knowingly makes, or causes to be made, any false, fictitious, fraudulent or misleading statement of material fact in, or omits a material fact from, or causes a material fact to be omitted from, any record or other document, in writing, electronically, orally or in any other form, 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. For the purposes of this subsection, a "material fact" includes but is not limited to: (1) any fact relating to the value of the real property that provides the collateral to secure the repayment of a residential mortgage loan; and (2) any fact relating to the current or expected income, financial obligations, or employment of a person who seeks or obtains a residential mortgage loan, relevant to the person’s ability to repay the loan.


My bold
 

Financially Feasible

Senior Member
Joined
Jun 25, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
:clapping::clapping::clapping:

Now if only my other three states could get their freakin' acts together... :icon_mrgreen:
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Outstanding - may it PASS - "as-is", be cloned across the U.S.A. - THEN ENFORCED!
 

Lost Cause

Senior Member
Joined
Sep 17, 2004
Professional Status
Certified General Appraiser
State
New York
Since when was fraud not already a crime? What a waste of time, making new rules when there's still no enforcement of the already existing ones.
 

Bama Bayou

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Joined
Oct 19, 2006
Professional Status
Certified General Appraiser
State
Alabama
Since when was fraud not already a crime? What a waste of time, making new rules when there's still no enforcement of the already existing ones.

That is what I was thinking too.
 

Financially Feasible

Senior Member
Joined
Jun 25, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
At least the process is beginning to be defined and, more importantly, so are the penalties for the crimes. Before, the whole idea was: "Yeah, you're guilty of a crime... but we have no procedure in place for punishing you. Therefore... ummm... you're free to go!". Everything has to start somewhere. I'm hoping that everyone at least sees the optimism in that.
 

Metamorphic

Senior Member
Joined
Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
What's the de-minimus amount? I couldn't find where its says.
 

imhere

Sophomore Member
Joined
Dec 6, 2007
Professional Status
Certified General Appraiser
State
New Jersey
Since when was fraud not already a crime? What a waste of time, making new rules when there's still no enforcement of the already existing ones.

You obviously know the politics of New Jersey very well. However, it appears that any law that does not specifically cover an offense is very difficult to enforce. This state is among the highest number of lawyers per square mile.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
However, it appears that any law that does not specifically cover an offense is very difficult to enforce.
This is it. Trying to come up with all the 'specific' scenarios is an impossible task.
 
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