Arizona - Inflated appraisals could result in felony charges and prison time up to 10 years

According to Inman News, "Mortgage fraud will be a felony in Arizona under legislation headed to the governor's desk."  Click here.

House Bill 2040 would make deliberate misrepresentations to lenders -- such as inflated appraisals or falsified borrower incomes used to obtain loans that exceed a home's true worth -- class four felonies, punishable by up to three years in prison.

Those who engage in "a pattern of residential mortgage fraud" or a conspiracy would face class two felony charges, punishable by up to 10 years in prison.

Click here for the complete story.