Yeah, my understanding is that mortgage fraud is usually charged under 18 USC 1341, 1343, 1344 or 1014, the first three of which require intent to defraud and the latter of which requires scienter.
Replies
yeesh, two forms with "primary residence" checked is nowhere enough evidence to prove the claim--even to a preponderance
aug 26, 2025, 5:36 pm • 0 0 • view
check 18 usc 1001
aug 26, 2025, 9:33 pm • 0 0 • view
1001 requires knowledge of falsity and would not be violated by someone who made a mistake in filling out some forms or who misunderstood the forms (which was the original, now-deleted question).
aug 26, 2025, 9:40 pm • 0 0 • view
Where are you seeing knowledge of falsity? Are you aware of how 1001 routinely gets used?
aug 26, 2025, 9:44 pm • 0 0 • view
I'm seeing it in the statutory text ("knowingly and willfully"), DOJ's criminal resource manual, and several more recent cases I checked to make sure the manual is still up to date.
aug 26, 2025, 9:55 pm • 1 0 • view
Ok, yeah, my error there But it’s hard to make the case here that there wasn’t knowledge of falsity (if we grant that the allegations are true for the sake of argument)
aug 26, 2025, 10:02 pm • 0 0 • view
I am less familiar with the alleged facts of this case. But I could imagine lack of knowledge if, e.g., someone signed a document without reading it closely, read the document but misunderstood it (perhaps after receiving bad advice), or believed they would or had also signed a Second Home Rider.
aug 26, 2025, 10:18 pm • 1 0 • view
iirc, in Cook's case the two loans closed within a month of each other. Given modern mortgage practices, if she really did apply for the GA property as a primary residence she would have had to ignore the second home option on the application, lied about the reason for recent inquiries...
aug 26, 2025, 10:22 pm • 1 0 • view
...lied about her intent for the MI property or failed to disclose it/falsely affirm that she disclosed all the property she owned, potentially lied about her work situation, etc it would actually be really hard to make a mistake in that situation
aug 26, 2025, 10:24 pm • 1 0 • view
given minimal, if any, downside to treating it as a second home I find it much more likely that she applied appropriately and either there was a second home rider or the *lender* made an error in not preparing one
aug 26, 2025, 10:25 pm • 2 0 • view
How would you sort that all out? May not be a clear answer and totally fair if that's your response, but I'm curious as to how she would demonstrate a lender mistake.
aug 26, 2025, 10:26 pm • 0 0 • view
This is very helpful. Thank you! I'm guessing we'll get a lot more information when Cook files her lawsuit.
aug 26, 2025, 10:47 pm • 1 0 • view