Residential mortgage fraud in the fourth degree: NY Penal Law § 187.10

by ECL Writer
Fraudulent disposition of property subject to a conditional sale contract

Residential mortgage fraud under New York’s criminal code involves the deliberate act of knowingly submitting a written statement related to a residential mortgage loan with the intent to deceive. In the context of this statute, “residential real property” pertains to real estate enhanced by a dwelling for one to four families. If you obtain a mortgage for undeveloped land with plans to construct a residence, it does not fall under the classification of residential real property.

There exist five distinct offenses associated with residential mortgage fraud, categorized into first, second, third, fourth, and fifth degrees. The specific charge you may face hinges on the monetary gain derived from the fraudulent activity. In accordance with New York Penal Law § 187.10, you could potentially be charged with residential mortgage fraud in the fourth degree if you engage in residential mortgage fraud resulting in an amount exceeding $1,000 but not exceeding $3,000.


Residential mortgage fraud in the fourth degree constitutes a class E felony, which carries the potential for a prison sentence of up to 4 years upon conviction. Additionally, you may face the possibility of a probationary term extending up to five years and be obligated to pay fines as part of the penalty.


You cannot face a conviction for residential mortgage fraud in the fourth degree under certain circumstances. If the false statement you made does not pertain to a material fact, if you did not knowingly make the false statement, or if your intent was not to defraud, you may have a valid defense. Moreover, if the property in question does not meet the statutory definition of residential real property, this can also serve as a defense against a residential mortgage fraud charge.

Furthermore, according to New York Penal Law § 187.01, if you are an applicant for a residential mortgage loan or your intention is to reside in the property secured by the mortgage, you are protected from prosecution for residential mortgage fraud.

New York Penal Law § 185.10: Residential Mortgage Fraud In The Fourth Degree

An individual can be charged with residential mortgage fraud in the fourth degree if, through their actions, they engage in residential mortgage fraud and receive total proceeds or funds exceeding one thousand dollars.

Related Offenses

Hiring A New York Lawyer For Residential Mortgage Fraud In The Fourth Degree Case

When facing allegations of residential mortgage fraud in the fourth degree in New York, hiring a qualified attorney is crucial. A skilled lawyer can navigate the intricacies of the legal process, assess the evidence against you, and develop a robust defense strategy. They will examine whether the false statements were related to material facts, assess your intent, and determine if the property qualifies as residential real property. With their expertise, they can work to protect your rights, negotiate on your behalf, and strive for a favorable outcome, whether through dismissal, reduced charges, or minimized penalties, potentially avoiding imprisonment and mitigating the impact on your life.

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