HB516 Summary

• Creates a new crime of mortgage fraud in Alabama, which did not previously exist as a specific criminal offense.

• Defines mortgage fraud as knowingly making material misstatements, misrepresentations, or omissions during residential mortgage lending transactions with intent to defraud, or using/facilitating such false information, receiving proceeds from such violations, or filing false documents with a probate judge's office.

• Establishes two degrees of mortgage fraud: first degree (financial loss over $500 or prior conviction) as a Class C felony, and second degree (no prior conviction and loss of $500 or less) as a Class A misdemeanor.

• Exempts the bill from Amendment 621 constitutional requirements regarding local funding because it defines a new crime.

• Takes effect on the first day of the third month following passage and gubernatorial approval.