If state or federal agents contact you about mortgage fraud in Texas, it can be frightening. You may worry about whether you are under investigation or if answering questions will protect you.
While federal laws exist, Texas has its own powerful statutes for prosecuting these cases. The way you respond can strongly influence the outcome. Here are four important things you should know if investigators approach you.
1. Investigators arrive prepared
By the time investigators from a local District Attorney’s office, the Texas Attorney General or the FBI reach out, they have often done their homework. They may have already collected loan applications, bank records and property appraisals.
They could also hold emails or witness testimony that they believe supports their case. Even if you are confident you did nothing wrong, they may already view you as involved.
2. Your words have serious consequences under Texas law
Investigators will record and analyze every statement you make. They will build their case using Texas Penal Code § 32.32, which makes it illegal to submit a false statement to obtain credit.
Crucially, the crime is in the statement itself, not the outcome. The prosecution does not have to show the lender lost money or that the loan went through. Lying to law enforcement during the investigation will only add more criminal charges to your situation.
3. You have the right to remain silent
You may feel intense pressure to answer questions immediately, but your rights under both the U.S. and Texas Constitutions allow you to remain silent until you speak with a lawyer. Politely stating that you want legal advice before responding shows that you take the situation seriously.
Exercising this right does not suggest guilt; it shows you want to avoid making irreversible mistakes.
4. The stakes are extremely high in Texas
Mortgage fraud investigations are complex, but the penalties in Texas are what make early legal help essential. The law directly ties the severity of the charge to the loan amount involved.
This means prosecutors could charge a misstatement on an application for a $300,000 home loan as a first-degree felony, punishable by 5 to 99 years or life in prison.
Navigating the Texas justice system
Facing a mortgage fraud inquiry in Texas requires more than knowing your rights. It demands a deep understanding of the prosecution’s strategy.
Hiring a former Texas prosecutor early provides a critical advantage. Their insider knowledge of the government’s playbook helps them challenge weak evidence and potentially stop charges before they are filed.