2005 Mortgage Fraud Legislation
Last Updated: December 7, 2007
Enactments are noted in italics
NCSL Staff Contact: Heather Morton, (303) 364-7700, Denver
| State: |
Bill Summary: |
| Georgia |
S.B. 100
Signed by governor 5/5/05, Act 162
Provides for the "Georgia Residential Mortgage Fraud Act"; provides a short title; provides for definitions; defines the criminal offense of residential mortgage fraud; provides for venue; provides penalties; authorizes district attorneys and the attorney general to investigate and prosecute cases of residential mortgage fraud; provides for the forfeiture of real and personal property; amends Chapter 14 of Title 16 of the Official Code of Georgia Annotated, the "Georgia RICO (Racketeer Influenced and Corrupt Organizations) Act," so as to include residential mortgage fraud within the definition of racketeering activity. |
| Louisiana |
H.B. 276
Signed by governor 6/28/05, Act 175
Creates the crime of disposal of property with fraudulent or malicious intent. Provides that it shall be unlawful for any person, who having executed a security agreement under Chapter 9 of the Louisiana Commercial Laws (R.S.10:9-101 et seq.) on movable property, to sell, assign, exchange, injure, destroy, conceal, or otherwise dispose of all or any part of the encumbered property with fraudulent intent to defeat the mortgage or security interest, or remove the encumbered property from the location designated in the security agreement, if any, or from the parish where it was located at the time of the granting of the security interest without written consent of the secured party, with fraudulent intent to defeat the security interest. Provides for penalties of not more than $500 or imprisoned for not more than six months, or both. |
| Missouri |
S.B. 435
This act enacts several measures to combat fraudulent practices with respect to real estate transactions. Under this act, a real estate appraiser who knowingly communicates a false or fraudulent appraisal or otherwise engages in fraudulent misconduct shall have his or her license revoked (Section 339.532). Any real estate appraiser who gives a false or fraudulent appraisal or who otherwise accepts an appraisal assignment which is contingent upon giving a certain appraisal shall be guilty of a Class A misdemeanor. If a real estate appraiser gives a false appraisal with the intent or knowledge that such appraisal will be used to defraud a person of this possessory interest in real estate then the appraiser shall be guilty of a Class D felony (Section 339.550). This act prohibits home solicitors from selling products financed by the consumer's home which would put the consumer in those types of situations. This act outlaws certain unfair or deceptive practices relating to home improvement loans to consumer. It would prohibit home solicitations where a home improvement loan is made encumbering the person's home to pay the loan and where the practice violates federal law. Violation of this act's provisions would constitute a Class A misdemeanor. This portion of the act is similar to SB 656 (2002) and HB 1144 (1999)(section 407.725). This act makes it a Class C felony for any person to record a forged deed with the recorder of deeds office. The person shall also be liable to the true property owner for actual damages or $1,000, whichever is greater along with court costs and attorney fees (Section 442.383). |
| New Jersey |
S.B. 2902
Creates the crime of residential mortgage fraud. 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 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 mortgage fraud. In order to facilitate uniform enforcement, the bill directs the attorney general to develop prosecution guidelines for dissemination to each of the county prosecutors within 180 days of the effective date of the act. |
| New York |
S.B. 2856
Relates to unauthorized entities, unregistered mortgage brokers and mortgage fraud; establishes additional penalties against unlicensed or unregistered persons or entities engaging in activities after receiving a cease and desist order; further establishes the crime of mortgage fraud in the first and second degree. |
| North Dakota |
H.B. 1126
Withdrawn from further consideration 1/10/05
Relates to judicial review and correction of false or fraudulent financing statements, liens, mortgages, or other interests in property; and provides a penalty. |
| Texas |
H.B. 3035
Creates a mortgage fraud task force to study mortgage fraud in this state. |
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