Saturday new laws goes into effect that will end the stated income inflation. Not only will the borrower be subject to jail time but anyone who believes that someone is making a false statement on a loan application can go to jail if they don’t turn the borrower in.
NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING STATEMENT
Effective September 1, 2007 and pursuant to Section 1. Subchapter B, Chapter 343, Section 343.105 of the Texas Finance Code, each mortgage lender, mortgage banker or licensed mortgage broker/loan officer shall provide to each applicant for a home loan this written notice at closing for full verification and execution by each loan applicant.
WARNING:
Intentionally or knowingly making a materially false or misleading statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, of the Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000.
If a person determines or reasonably suspects that fraudulent activity has been committed or is about to be committed, the law requires that person to report the information to an authorized governmental agency.
Texas also has created a Task Force to root out any mortgage fraud. All the State agencys that may have anything to do with lending will be part of the new task force.
Here is a link for more details:
http://www.sml.state.tx.us/Website%20Proposal%20for%2080th%20Legislature%20Activity.htm