What is the penalty for mortgage fraud under federal law?

Mortgage fraud is a serious crime under federal law, and the penalties reflect this seriousness to deter such activities. When it comes to the repercussions of engaging in mortgage fraud, individuals can face severe consequences, including imprisonment for up to 30 years. Additionally, there is the possibility of being subject to a fine of up to $1,000,000.

This substantial penalty structure underscores the federal government's stance on protecting consumers and maintaining the integrity of the mortgage industry. Mortgage fraud can take many forms, including misrepresentation of income, property values, and borrower qualifications, all of which can lead to significant financial losses for lenders and investors.

The options that suggest lesser penalties do not accurately align with the severity of federal regulations regarding mortgage fraud. The inclusion of longer imprisonment durations and substantial fines illustrates the legal framework's intent to address the gravity of these offenses and prevent their occurrence.