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

Residential mortgage fraud is defined in the New York criminal code as knowingly submitting a written statement with reference to residential mortgage loan with the intent to defraud. For purposes of the residential mortgage fraud statute, "residential real property," refers to real estate that has been improved by a 1 to 4 family dwelling. If you take out a mortgage on unimproved land on which you intend to build a residence, that property would not be considered residential real property. There are 5 offenses related to residential mortgage fraud: residential mortgage fraud in the first, second, third, fourth and fifth degrees. The specific crime that you will face depends on the amount of money received as a result of the fraud. Under New York Penal Law § 187.10, you could be charged with residential mortgage fraud in the fourth degree if you commit residential mortgage fraud and the amount involved is more than $1000 and not more than $3000.


The town offered a special program designed to get rid of dilapidated, abandoned homes. The town was selling them for $3000, as long as the purchaser agreed to renovate them and live in them within 1 year after the purchase. Charles saw the program as the opportunity to finally have his own home. However, Charles was unemployed as afraid that he would not be approved for a mortgage. Charles lied about his employment status and his income on his mortgage application. He was approved for a $2500 loan. While Charles did lie about a material fact on his mortgage application, Charles cannot be prosecuted under the statute because his intention was to occupy the property secured by the mortgage loan.

Related Offenses
  1. Residential mortgage fraud in the fifth degree: New York Penal Law § 187.05
  2. Residential mortgage fraud in the third degree: New York Penal Law § 187.15
  3. Residential mortgage fraud in the second degree: New York Penal Law § 187.20
  4. Residential mortgage fraud in the first degree: New York Penal Law § 187.25

You cannot be convicted of residential mortgage fraud in the fourth degree if the false statement you made was not related to a material fact, if you did not "knowingly" make the false statement, or if you did not have intent to defraud. In addition, if the property involved was not residential real property as defined by the statute, then you have a defense to a residential mortgage fraud charge.

Also, under New York Penal Law § 187.01, if you are an applicant for a residential mortgage loan or you intend to live in the residence that the mortgage is to secure, you cannot be prosecuted for residential mortgage fraud.


Residential mortgage fraud in the fourth degree is a class E felony. If you are convicted of this offense you could be sent to prison for up to 4 years. You could also receive a probation sentence of up to 5 years and be required to pay a fine.

New York Penal Law § 185.10: Residential mortgage fraud in the fourth degree

A person is guilty of residential mortgage fraud in the fourth degree when he or she commits residential mortgage fraud and thereby receives proceeds or any other funds in the aggregate in excess of one thousand dollars.

Contact the Law Offices of Stephen Bilkis & Associates

If you are under investigation for residential mortgage fraud, it is important to immediately speak with an experienced New York residential mortgage fraud attorney. The staff at the Law Offices of Stephen Bilkis & Associates has years of experience successfully defending clients in New York criminal courts who have been charged with fraud, grand larceny, white collar crimes, and other serious crimes. Contact us at 800.696.9529 to schedule a free, no obligation consultation regarding your case. We serve those accused of larceny in the following locations: the Bronx, Brooklyn, Long Island, Manhattan, Nassau County, Queens, Staten Island, Suffolk County and Westchester County.

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