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Can you summarize AZRS 13-2320?
ORGANIZED CRIME, FRAUD AND TERRORISMSec: 13-2301-13-2323 > Residential mortgage fraud; classification; definitions
Short Summary
This section of the Arizona Revised Statutes, specifically under the Criminal Code, addresses residential mortgage fraud. It defines residential mortgage fraud as the intentional act of making deliberate misstatements, misrepresentations, or material omissions during the mortgage lending process, or facilitating their use, which are relied upon by mortgage lenders, borrowers, or other parties involved in the process. It also includes receiving proceeds or other monies from a residential mortgage loan that the person knows resulted from such fraudulent acts, as well as filing or causing to be filed residential mortgage loan documents containing deliberate misstatements, misrepresentations, or material omissions. The section provides definitions for key terms such as ‘mortgage lending process,’ ‘pattern of residential mortgage fraud,’ and ‘residential mortgage loan.’ It specifies that violations of this section can result in felony charges, with class 4 felony for individual violations and class 2 felony for engaging in a pattern of residential mortgage fraud or conspiring to do so. The section also clarifies that certain lawful disclosures under federal disclosure laws related to the mortgage lending process do not form the basis for an offense of residential mortgage fraud. However, it does not apply to individuals who are unaware that the information they rely upon is fraudulent.
Whom does it apply to?
Any person involved in the mortgage lending process, including mortgage lenders, borrowers, and other parties
What does it govern?
Residential mortgage fraud
What are exemptions?
This section does not apply to a person who is not aware that the information relied upon is a deliberate misstatement, misrepresentation, or material omission. Additionally, an offense involving residential mortgage fraud shall not be based solely on information lawfully disclosed under federal disclosure laws, regulations, and interpretations related to the mortgage lending process.
What are the Penalties?
A person who violates this section is guilty of a class 4 felony, except for those who engage or participate in a pattern of residential mortgage fraud or conspire to do so, who are guilty of a class 2 felony.
Jurisdiction
Arizona