Residential Mortgage Fraud In The Third Degree: NY Penal Law § 187.15

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

Residential mortgage fraud is a white-collar criminal activity involving the acquisition of a mortgage for residential property through the submission of false information on the loan application. Much like grand larceny, it constitutes a form of theft. In the context of the residential mortgage fraud statute, “residential real property” pertains to real estate improved with a one to four-family dwelling.

Unimproved land intended for future residence construction does not fall under this classification. The legal framework recognizes five distinct degrees of residential mortgage fraud: first through fifth. The specific charge you face hinges on the monetary gain resulting from the fraud. Pursuant to New York Penal Law § 187.15, residential mortgage fraud in the third degree applies when the fraudulent activity involves an amount exceeding $3,000 but not surpassing $50,000.


Residential mortgage fraud in the third degree is categorized as a class D felony. A conviction for this offense carries the potential of a maximum prison term of 7 years. Additionally, you may be subject to a probationary period of up to 5 years and could be mandated to pay a significant fine.


To establish a case for residential mortgage fraud in the third degree, the prosecutor must demonstrate several key elements. Firstly, they need to prove that the false statement you made pertained to a significant fact and that you did so knowingly with the intent to defraud. Failure to establish any of these elements can make it challenging for the prosecutor to secure a conviction. Additionally, the prosecutor must show that the monetary amount involved exceeded $3,000. Moreover, if you are applying for a residential mortgage loan or intend to reside in the secured residence, you are exempt from prosecution for residential mortgage fraud.

New York Penal Law § 185.15: Residential Mortgage Fraud In The Third Degree

An individual can be deemed guilty of residential mortgage fraud in the third degree if, through committing residential mortgage fraud, they acquire proceeds or funds totaling more than three thousand dollars in total.

Related Offenses

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

Securing the services of a New York attorney is paramount when facing residential mortgage fraud in the third degree case. This legal matter is serious and necessitates the expertise of a lawyer well-versed in such cases. Your attorney will diligently investigate the allegations, gather evidence, and formulate a robust defense strategy. Mortgage fraud laws in New York are stringent, and a skilled lawyer can help you comprehend the charges, and potential consequences, and navigate the legal intricacies. Whether through negotiation or litigation, they’ll strive for the best possible resolution. With their guidance, you can safeguard your rights and work towards a favorable outcome.

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