California Criminal Defense Blog

The California Attorney General announced yesterday that the state has a new Mortgage Fraud Taskforce. This team, comprised of lawyers and investigators from the California Department of Justice, will investigate and prosecute those suspected of predatory lending practices and other fraudulent mortgage-related practices. Mayor Villaraigosa praised this program, stating that the Task Force “is certain to help thousands of residents and families from being victimized by instituting the critical law enforcement component to help stop the practice of predatory lending once and for all.”

California predatory lending schemes have been on the rise since our economy began to decline. This type of fraud takes advantage of unsuspecting borrowers and wreaks havoc on distressed homeowners and lending institutions alike. Predatory lenders “prey” on unsophisticated buyers, convincing them to accept unjustifiable and unreasonable loan/refinance terms, which they ultimately cannot afford to repay.

Engaging in acts of predatory lending subjects you to state and federal prosecution under a number of different laws including (but not limited to): grand theft, forgery, and conspiracy. A conviction for this offense triggers prison time, substantial fines, and professional discipline.

California predatory lending schemes are not new. In fact, this type of fraud involving outright deception that takes advantage of unsuspecting borrowers has been around for quite some time. But as our state’s housing crisis became more and more disastrous, predatory lending scams grew, which is why they have been getting so much publicity.

Because California predatory lending schemes can cause so much financial damage…to already distressed homeowners and lending institutions alike…the government is eager to invest its resources into prosecuting offenders. This is why many federal, state and local law enforcement agencies have set up task forces to deal with this type of mortgage fraud.

Unfortunately, many victims of predatory lending scams do not realize that they have been illegally preyed upon. This is because of the fact that predatory lenders often seek borrowers who are elderly and/or unsophisticated and will therefore be less suspicious and more agreeable to whatever loan / refinance terms are presented to them.

If you believe that you or a loved one is facing unjustifiable and unreasonable loan terms…terms that are clearly not in the borrower’s interest…you should consider contacting your local law enforcement agency. And if you have been accused of being involved in a predatory lending scheme, you should immediately contact an experienced California real estate fraud defense attorney.