Whoever, being a mortgagee, knowingly makes any false statement in any paper, proposal, or letter, relating to the sale of any mortgage, to any Federal land bank; or
Whoever, being an appraiser, willfully over-values any land securing such mortgag.
Shall be fined under this title or imprisoned not more than one year, or both.
Mortgage fraud is commonly referred to as a white collar crime. White collar crimes are criminal prosecutions for non-forceful theft and fraud schemes and criminal solicitation prosecutions. The most common element of federal prosecutions for mortgage fraud are: material misstatement (fraud), misrepresentation (another fraud theory of prosecution), commonly used are allegations of material omission by a mortgage broker or mortgage provider to induce a fraudulent transaction based on criminal misrepresentations amounting to federal fraud. In Federal court these criminal prosecutions usually begin with allegations that a defendant used or employed interstate mans of communication, such as electronic document transfers over federally regulated interstate telephone and electronic data transfers. These cases become federal criminal matters under the theory that the use of the means of interstate commerce and communication are sufficient basis for federal jurisdiction to be invoked to prosecute these matters as federal crimes to be heard by federal courts.