Depends when she purchased... was in last two years ? That will dictate if the second home was more expensive in terms of interest rates .
Was it a second home?
Also, you cant claim a five unit is a four unit. There is a a title policy .
But as Trump said... the banks got their money so mo harm no foul.
Well, Ed, you’re wrong again. Why am I not surprised?
Below is a detailed breakdown of the **federal** and **state** penalties in **Washington** for defrauding a mortgage company while attempting to obtain a mortgage loan, based on applicable laws and available information.
---
### **Federal Penalties for Mortgage Fraud in Washington**
Mortgage fraud involving federally insured financial institutions (e.g., banks insured by the FDIC, or loans backed by Fannie Mae, Freddie Mac, or FHA) is typically prosecuted under federal law. Common statutes include:
- **18 U.S.C. § 1014**: False statements to a financial institution.
- **18 U.S.C. § 1341/1343**: Mail or wire fraud (often used when fraud involves interstate communications or electronic transactions).
- **18 U.S.C. § 1344**: Bank fraud.
#### **Penalties**
- **Imprisonment**: Up to **30 years in federal prison** per count for violations of § 1014, § 1341, § 1343, or § 1344. The actual sentence depends on factors like the amount of loss, the defendant’s role, and criminal history, as determined by the **Federal Sentencing Guidelines**.
- For example, a fraud causing a loss of $100,000–$400,000 could add 12–18 months to the base sentence under the Guidelines.
- **Fines**: Up to **$1 million** per count, or twice the gross gain/loss caused by the fraud, whichever is greater.
- **Restitution**: Courts typically order repayment of the full amount defrauded to the mortgage company or other victims.
- **Supervised Release**: Post-prison supervision for **1–5 years**, depending on the offense severity.
- **Asset Forfeiture**: Assets gained through fraud (e.g., property, bank accounts) may be seized.
- **Civil Penalties**: Victims may pursue civil lawsuits, with no cap on damages.
#### **Additional Federal Considerations**
- **Jurisdiction**: Federal prosecutors in Washington (Western or Eastern District) handle these cases if the fraud involves federally insured institutions or crosses state lines.
- **Sentencing Factors**: Sentences may increase if the fraud targeted vulnerable victims (e.g., elderly), involved sophisticated means, or caused significant financial harm. Cooperation with authorities can reduce penalties.
- **Collateral Consequences**: A federal conviction may result in loss of professional licenses (e.g., for real estate brokers), restricted loan eligibility, and a permanent criminal record affecting employment.
For more details, refer to the U.S. Department of Justice website (justice.gov) or the **Federal Sentencing Guidelines** (available at ussc.gov).
---
### **State Penalties for Mortgage Fraud in Washington**
In Washington, mortgage fraud is addressed under state laws, primarily through statutes related to theft, fraud, or specific mortgage fraud provisions. The most relevant laws include:
- **RCW 9A.60.010 et seq.**: Fraud-related offenses, such as obtaining property by false pretenses.
- **RCW 9A.56.020**: Theft, which can apply if fraud results in wrongful acquisition of funds.
- **RCW 19.144.080**: Washington’s Mortgage Fraud statute, which prohibits misrepresentations in mortgage transactions.
Mortgage fraud is typically prosecuted as **theft** or **fraud**, with penalties depending on the value of the property or money involved.
#### **Penalties**
Penalties are based on Washington’s classification of crimes (Class A, B, or C felonies, or misdemeanors) under **RCW 9A.20.021** and the value of the fraud under **RCW 9A.56**.
1. **First-Degree Theft (RCW 9A.56.030)** – If the value exceeds **$5,000** (common in mortgage fraud due to loan amounts):
- **Classification**: Class B felony.
- **Imprisonment**: Up to **7 years** in state prison.
- **Fines**: Up to **$20,000**.
- **Restitution**: Mandatory repayment to the victim (e.g., mortgage company).
2. **Second-Degree Theft (RCW 9A.56.040)** – If the value is between **$750 and $5,000**:
- **Classification**: Class C felony.
- **Imprisonment**: Up to **5 years** in state prison.
- **Fines**: Up to **$10,000**.
- **Restitution**: Required.
3. **Third-Degree Theft (RCW 9A.56.050)** – If the value is **$750 or less** (rare in mortgage fraud):
- **Classification**: Gross misdemeanor.
- **Imprisonment**: Up to **364 days** in county jail.
- **Fines**: Up to **$5,000**.
- **Restitution**: Required.
4. **Mortgage Fraud (RCW 19.144.080)** – Misrepresentations in mortgage transactions:
- **Classification**: Can be charged as a felony (Class B or C, depending on the scale) or misdemeanor, based on intent and harm.
- **Imprisonment**: Up to **7 years** for felony-level offenses.
- **Fines**: Vary, often up to **$20,000** for felonies.
- **Civil Penalties**: The Washington Department of Financial Institutions (DFI) may impose fines or revoke licenses for professionals (e.g., mortgage brokers).
#### **Sentencing Considerations**
- **Washington Sentencing Guidelines**: Sentences depend on the defendant’s **offender score** (based on criminal history) and the offense’s **seriousness level**. For example, first-degree theft (seriousness level II) with no prior convictions may result in **0–90 days** for a first-time offender, but higher scores increase prison time.
- **Aggravating Factors**: Penalties may increase if the fraud involved vulnerable victims, a pattern of fraud, or significant financial harm.
- **Restitution**: Courts prioritize victim compensation, which can be substantial in mortgage fraud cases.
- **Professional Consequences**: Real estate or mortgage professionals may face license suspension/revocation by the DFI under **RCW 19.144.100**.
#### **Collateral Consequences**
- A state conviction can limit future loan eligibility, restrict employment (especially in finance or real estate), and damage credit.
- Civil lawsuits from the mortgage company or other victims may result in additional financial liability.
For more details, see the **Revised Code of Washington** (available at app.leg.wa.gov/RCW) or the Washington State Department of Financial Institutions (dfi.wa.gov).
---
### **Key Differences Between Federal and State Penalties**
- **Severity**: Federal penalties are generally harsher, with longer prison terms (up to 30 years vs. 7 years) and higher fines (up to $1 million vs. $20,000).
- **Jurisdiction**: Federal cases involve federally insured institutions or interstate activity, while state cases focus on local transactions or violations of Washington law.
- **Prosecution**: Federal cases are handled by U.S. Attorneys in federal courts (e.g., Western District of Washington in Seattle), while state cases are prosecuted by county prosecutors in superior courts.
- **Resources**: Federal investigations (e.g., by the FBI or HUD-OIG) often have more resources, increasing conviction likelihood.
---
### **Defenses**
Common defenses include:
- **Lack of Intent**: Proving the misrepresentation was an honest mistake (e.g., clerical error) rather than intentional fraud.
- **Insufficient Evidence**: Challenging the prosecution’s proof of material misrepresentation or reliance by the lender.
- **Statute of Limitations**: Federal cases have a 7-year limit for mortgage fraud (18 U.S.C. § 3293); Washington’s limit is typically 3 years for felonies (RCW 9A.04.080).
An experienced criminal defense attorney familiar with federal and Washington state law is critical for building a defense.
---
### **Recommendation**
Mortgage fraud is a serious offense with significant consequences. If you’re under investigation or charged, immediately consult a criminal defense attorney with experience in federal and Washington state fraud cases. For federal law details, visit justice.gov. For state law, check app.leg.wa.gov/RCW or contact the Washington DFI (dfi.wa.gov). Always seek professional legal counsel tailored to your case.
*Note*: This is general information, not legal advice. Penalties depend on case specifics. Consult an attorney for personalized guidance
