Mortgage Fraud

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Of the 66,662 cases reported to the Commission in fiscal year 2025, 47 involved mortgage fraud. Mortgage fraud offenses have decreased 19% since fiscal year 2021.1, 2

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Individual and Offense Characteristics

 

 

  • 72% of individuals sentenced for mortgage fraud were men.
     
  • 45% were White, 26% were Hispanic, 21% were Black, and 9% were Other races.
     
  • Their average age was 50 years. 
     
  • 96% were United States citizens.
     
  • 89% had little or no prior criminal history (Criminal History Category I).
     
  • 55% received the adjustment at USSG §4C1.1 for zero criminal history points.
     
  • The median loss for these offenses was $849,584;3
    • 15% involved loss amounts of less than $250,000;
    • 9% involved loss amounts greater than $9,500,000.
       
  • Sentences were increased for:
    • the number of victims or the extent of harm to victims (26%);4
    • using sophisticated means to execute or conceal the offense (49%);
    • using an unauthorized means of identification (6%);
    • a leadership or supervisory role in the offense (15%);
    • abusing a public position of trust or using a special skill (15%);
    • obstructing or impeding the administration of justice (11%).
       
  • Sentences were decreased for:
    • minor or minimal participation in the offense (13%).
       
  • The top six districts for mortgage fraud offenses were:
    • Southern District of Texas (8);
    • District of New Jersey (7);
    • Northern District of Illinois (6);
    • District of Massachussetts (4);
    • Northern District of California (4);
    • Middle District of Florida (4).

 

Punishment

  • The average sentence length for individuals sentenced for mortgage fraud was 25 months. 
     
  • 79% were sentenced to prison. 
     
  • One individual was convicted of an offense carrying a mandatory minimum penalty; that individual was relieves of that penalty.5

 

Sentences Relative to the Guideline Range 

  • 57% of sentences for mortgage fraud were under the Guidelines Manual.
    • 21% were within the guideline range.
       
    • 34% were substantial assistance departures.
      • The average sentence reduction was 87%.
         
    • 2% were Early Disposition Program (EDP) departures.6 
       
  • 43% of sentences for mortgage fraud were variances.
    • 40% were downward variances.
      • The average sentence reduction was 52%.
         
    • 2% were upward variances.

 

 

 

 

  • The average guideline minimum and average sentence imposed have increased over the past five years.
    • The average guideline minimum increased from 29 months in fiscal year 2021 to 43 months in fiscal year 2025.
       
    • The average sentence imposed increased from 14 months in fiscal year 2021 to 25 months in fiscal year 2025.

1 Mortgage fraud includes cases where the offense conduct as described in the Presentence Report involved any misrepresentation intended to obtain a home loan, the application to multiple banks for a loan on a single property, foreclosure rescue scams, or reverse mortgage scams.

2 Cases with incomplete sentencing information were excluded from the analysis. 

3 The Loss Table was amended effective November 1, 2001 and November 1, 2015.

4 The Victims Table and Sophisticated Means adjustment were amended effective November 1, 2015.

5 The Commission does not report the average for categories with fewer than three cases.

6 “Early Disposition Program” (or EDP) departures are departures where the government sought a sentence below the guideline range because the defendant participated in the government’s Early Disposition Program, through which cases are resolved in an expedited manner. See USSG §5K3.1.

SOURCE: United States Sentencing Commission, FY 2021 through FY 2025 Datafiles, USSCFY21-USSCFY25.

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