Category: Criminal Offenses · Statute: F.S. 817.545 · Source: Florida Legislature
Understanding Mortgage Fraud in Florida
In Florida, mortgage fraud is prosecuted under Section 817.545 of the Florida Statutes. This offense occurs when an individual, with the intent to defraud, makes material misrepresentations, misstates key information, or omits crucial facts during the mortgage lending process. The law targets a wide range of deceptive practices, from individual borrowers inflating their income on a loan application (often called "fraud for housing") to complex, multi-party schemes designed to siphon off equity or secure illicit profits through inflated appraisals and straw buyers ("fraud for profit").
To secure a conviction, Florida prosecutors must prove that the defendant knowingly made a false statement or omission with the intent that a mortgage lender, borrower, or other party in the transaction would rely upon it. Because mortgage transactions involve extensive digital and physical paperwork, Florida law enforcement agencies often collaborate with federal investigators to track the paper trail. While a standard violation involving a single loan is charged as a third-degree felony, the offense is elevated to a second-degree felony if the fraud involves loan proceeds or loan values exceeding $100,000.
Bail and Pretrial Release for Mortgage Fraud
Because mortgage fraud is a non-violent white-collar crime, defendants with no prior criminal record are often eligible for standard monetary bail or release on their own recognizance (ROR). However, because these charges frequently involve significant sums of money, judges may express concern that the illicit proceeds could be used to secure the defendant's release. Consequently, prosecutors may request a Nebbia hearing. During this hearing, the defendant must present clear financial documentation to prove that the funds used to pay the bail bond premium or collateral originate from legitimate, untainted sources rather than the alleged fraudulent mortgage transactions.