The Obameter

Create new criminal penalties for mortgage fraud

"We will crack down on mortgage professionals found guilty of fraud by increasing enforcement and creating new criminal penalties."

Sources: Speech, "Changing the Odds for Urban America," July 18, 2007

Subjects: Crime, Housing


Fraud Enforcement and Recovery Act gives new power to prosecute mortgage fraud

Updated: Monday, October 5th, 2009 | By Angie Drobnic Holan

During the campaign, Barack Obama promised increased enforcement for mortgage fraud. The Fraud Enforcement and Recovery Act updated definitions in federal antifraud statutes to include mortgage lenders who are not directly regulated or insured by the federal government. Obama signed the law May 20, 2009.

The law also makes it a federal crime to make a materially false statement on a mortgage application or to willfully overvalue a property to influence any action by a mortgage lending business. Previously, the law only applied to institutions directly regulated by the federal government.

We rate this Promise Kept.


White House, President Obama Signs the Helping Families Save Their Homes Act and the Fraud Enforcement and Recovery Act , May 20, 2009

U.S. Government Printing Office, The Fraud Enforcement And Recovery Act of 2009

How to contact us:

We want to hear your suggestions and comments.

For tips or comments on our Obameter and our GOP-Pledge-O-Meter promise databases, please e-mail the Obameter. If you are commenting on a specific promise, please include the wording of the promise.

For comments about our Truth-O-Meter or Flip-O-Meter items, please e-mail the Truth-O-Meter. We’re especially interested in seeing any chain e-mails you receive that you would like us to check out. If you send us a comment, we'll assume you don't mind us publishing it unless you tell us otherwise.

Browse The Truth-O-MeterTM: