What to Do If You Are Accused of Mortgage Fraud in Texas

 Posted on June 23, 2025 in Federal Crimes

Facing charges of mortgage fraud in Texas is serious business. A felony conviction can carry substantial fines and prison time. If you are under investigation or have been formally charged, you need a knowledgeable Texas mortgage fraud defense attorney to protect your rights. Building a strong defense strategy requires a nuanced understanding of Texas criminal law and experience facing these challenges in court.

What Is Mortgage Fraud Under Texas Law?

Under Texas Penal Code § 32.32, mortgage fraud is generally prosecuted as part of a broad offense of making false statements to obtain property or credit. This includes knowingly making a false or misleading written statement to obtain a mortgage loan. Cases often involve alleged misrepresentations about income, employment, debt obligations, property value, or occupancy status.

If these actions are done with the intent to deceive a lender or financial institution, federal charges may be brought under 18 U.S. Code § 1014. As of June 2025, mortgage fraud investigations are sometimes handled jointly by state and federal agencies, depending on the nature and scope of the allegations.

How To Respond to a Mortgage Fraud Investigation in Texas

Being proactive is essential when you are under investigation for mortgage fraud. Some steps you could take immediately include:

• Hire legal counsel: Your attorney can interact with investigators, review evidence, and advise you throughout the process.

• Preserve all records: Gather and store loan documents, emails, contracts, and anything related to the mortgage transaction.

• Avoid discussing your case: Do not speak to coworkers, lenders, friends, or anyone other than your attorney about the investigation.

• Stay off social media: Even seemingly innocent posts may be used to build a case against you.

What Are the Possible Defenses Against a Mortgage Fraud Charge in Texas?

One of the most common defenses to mortgage fraud is the absence of intent. Prosecutors must prove that you knowingly and intentionally made a false statement to deceive the lender. If the misstatement was due to an honest mistake or lack of awareness, it may not meet the legal standard for fraud. Another possible defense involves materiality. If the false statement did not significantly influence the lender’s decision or affect the outcome of the transaction, it may not be considered fraudulent.

Procedural violations, such as improper searches, unlawful evidence collection, or constitutional rights violations, may lead to the suppression of evidence against you. In cases where the government’s evidence is inconsistent or unreliable, the defense can argue that the prosecution has not met its burden of proof. These strategies, when applied correctly, can lead to a reduction or dismissal of charges. An advantage of working with an experienced attorney is that mortgage fraud defenses are often familiar. Your attorney will likely know what works and what does not.

Connect With a San Antonio, TX Mortgage Fraud Defense Attorney Today

If you are facing allegations of mortgage fraud, you need immediate legal representation from someone who understands Texas and federal law. A conviction can impact your career, finances, reputation, and freedom. At the Law Offices of Sam H. Lock, our San Antonio mortgage fraud lawyer will evaluate the evidence, develop a tailored defense strategy, and fight aggressively on your behalf. Contact us today at 210-226-0965 to arrange your initial consultation.