Regulatory Alerts2010-03-11
Alabama Residential Mortgage Fraud Act
The Alabama Legislature enacted the Alabama Residential Mortgage Fraud Act to protect borrowers, lending institutions, and the integrity of the mortgage lending process. The statute criminalizes residential mortgage fraud as a Class C felony by prohibiting any individual from knowingly making, facilitating, or filing documents containing material misstatements or misrepresentations with the intent to defraud. Prosecutions may be brought in any county where the property is located, where acts were performed, where proceeds were controlled, where a closing occurred, or where fraudulent documents were filed, with district attorneys and the Attorney General authorized to conduct criminal investigations and each transaction treated as a separate offense.