Public Law 30-44 - An Act to add a new Article 3 to Chapter 46 of Title 9, Guam Code Annotated, relative to mortage fraud

Felix P Camacho Governor P.O. Box 2950 Hagatfia, Guam 96932 TEL: (671) 472-8931 • FAX: (671) 477-4826 • EMAIL: govemor@mail.gov.gu Michael W Cruz, M.D. Lieutenant Governor The Honorable Judith T. Won Pat, Ed.D. Speaker Mina ' Trenta Na Liheslaturan Guahan 155 Hessler Street Hagatfia, Guam 96910 Dear Speaker Won Pat: 1 6 JUL 2009 '\:: '-J Transmitted herewith is Bill No. 16(LS) "AN ACT TO ADD A NEW ARTICLE 3 TO CHAPTER 46 OF TITLE 9, GUAM CODE ANNOTATED, RELATIVE TO MORTAGE FRAUD" which I signed into law on July 14, 2009 as Public Law 30-44. Sinseru yan Magahet, MICHAEL W. CRUZ, M.D. I Maga 'lahen Guahan, para pa 'go Acting Governor of Guam Attachment: copy of Bill 0816 I MINA'TRENTA NA LIHESLATURAN GUAfIAN 2009 (FIRST) Regular Session CERTIFICATION OF PASSAGE OF AN ACT TO I MAGA'LAHEN GuAH.AN This is to certify that Bill No. 16 (LS), "AN ACT TO ADD A NEW ARTICLE 3 TO CHAPTER 46 OF TITLE 9, GUAM CODE ANNOTATED, RELATIVE TO MORTAGE FRAUD," was on the 2nd day of July 2009, duly and regularly passed. R e Muna Barnes Senator and egislative Secretary Judith T. Won Pat, Ed. D. Speaker This Act was received by I Maga'lahen Guahan this 'l day of ~ , 2009, at tf W o'clock P .M. APPROVED: MIKE W. CRUZ, l"ll GoWH«lROFGuAl'tAm~ Date: {)r, 14• ~ PublicLawNo. ,O.~ I MINA 'TRENTA NA LIHESLATURAN GUAHAN 2009 (FIRST) Regular Session Bill No. 16 (LS) As amended on the Floor. Introduced by: Ray Tenorio T. C. Ada F. B. Aguon, Jr. F. F. Blas, Jr. E. J.B. Calvo B. J.F. Cruz J. V. Espaldon Judith P. Guthertz, DPA T. R. Muna Barnes Adolpho B. Palacios, Sr. v. c. pangelinan M. J. Rector R. J. Respicio Telo Taitague Judith T. Won Pat, Ed.D. AN ACT TO ADD A NEW ARTICLE 3 TO CHAPTER 46 OF TITLE 9, GUAM CODE ANNOTATED, RELATIVE TO MORTAGE FRAUD. 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2 Section 1. Article 3 is added to Chapter 46 of Title 9, Guam Code 3 Annotated, to read: 4 "Article 3 5 Mortgage Fraud 6 7 §46.100. Title. This Act may be cited as the Mortgage Fraud Act. §46.101. Definitions. As used in this Act: (a) Mortgage lending 8 process means the process through which a person seeks or obtains a 1 1 mortgage loan, including solicitation, application, or origination, 2 negotiation of terms, third-party provider services, underwriting, s1gmng 3 and closing, and funding of the loan. 4 (b) Mortgage loan: 5 ( 1) means a loan or agreement made to extend credit to a 6 person when the loan is secured by a deed, security deed, mortgage, 7 security interest, deed of trust, or other document representing a 8 security interest or lien upon any interest in one (1)-to-four (4) family 9 residential property; 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 (2) includes the renewal or refinancing of any loan; and (3) includes home equity loans. ( c) Unlawful activity means to directly engage in conduct or to solicit, request, command, encourage, or intentionally aid another person to engage in conduct which would constitute any offense described by the following crimes or categories of crimes, or to attempt or conspire to engage in an act which would constitute any of those offenses, regardless of whether the act is in fact charged or indicted by any authority or is classified as a misdemeanor or a felony ( d) Pattern of unlawful activity means engaging in conduct which constitute the commission of at least three (3) episodes of unlawful activity, which episodes are not isolated, but have the same or similar purposes, results, participants, victims, or methods of commission, or otherwise are interrelated by distinguishing characteristics. Taken together, the episodes shall demonstrate continuing unlawful conduct and be related either to each other or to the enterprise. The most recent act constituting part of a pattern of unlawful activity as defined by this part shall have occurred within five 2 I ( 5) years of the commission of the next preceding act alleged as part of the 2 pattern. 3 ( e) Sensitive personal identifying information means any of the 4 following information regarding an individual's: 5 6 7 8 9 10 I I 12 13 14 15 16 17 18 19 20 21 22 (1) Social Security number; (2) driver license number or other government issued identification number; (3) financial account number or credit or debit card number; ( 4) password or personal identification number or other identification required to gain access to a financial account or a secure website; ( 5) automated or electronic signature; ( 6) unique biometric data; and (7) any other information that can be used to gain access to an individual's financial accounts or to obtain goods or services. (f) Value means the value of the property, money, or thing obtained or sought to be obtained. (g) Person includes any individual or entity capable of holding a legal or beneficial interest in property, including governmental entities. (h) Obtain means to come into possession of, get, acqmre or 23 procure. 24 §46.102. Mortgage Fraud. (a) A person commits the offense of 25 mortgage fraud if the person does any of the following with the intent to 26 defraud: 3 1 2 3 4 5 ( 1) knowingly makes any material misstatement, misrepresentation, or omission during the mortgage lending process, intending that it be relied upon by a mortgage lender, borrower, or any other party to the mortgage lending process; (2) knowingly uses or facilitates the use of any material 6 misstatement misrepresentation, or omission, during the mortgage 7 lending process, intending that it be relied upon by a mortgage lender, 8 borrower, or any other party to the mortgage lending process; 9 (3) files or causes to be filed with the Department of Land 10 Management any document that the person knows contains a material 11 misstatement, misrepresentation, or omission; or 12 (4) receives any proceeds or any compensation in connection with 13 a mortgage loan that the person knows resulted from a violation of 14 this Section. 15 §46.103. Classification of Offense. (a) Notwithstanding any 16 other administrative, civil, or criminal penalties, a person who violates 17 §46.102 of this Chapter is guilty of a: 18 ( 1) misdemeanor when the value is or exceeds Three 19 Hundred Dollars ($300) but is less than One Thousand Dollars 20 ($1,000); 21 (2) third degree felony when the value is or exceeds One 22 Thousand Dollars ($1,000) but is less than Five Thousand Dollars 23 ($5,000); 24 (3) second degree felony when the value is or exceeds Five 25 Thousand Dollars ($5,000); 4 1 (4) second degree felony when the object or purpose of the 2 commission of an act of mortgage fraud is other than the obtaining of 3 something of monetary value; and 4 (5) second degree felony when the object or purpose of the 5 commission of an act of mortgage fraud is the obtaining of sensitive 6 personal identifying information, regardless of the value. 7 (6) The determination of the degree of any offense under 8 this Subsection (a) is measured by the total value of all property, 9 money, or things obtained or sought to be obtained by a violation of 10 §46.102 of this Chapter, except as provided in Subsections (a)(4) and 11 (5). 12 (b) Each residential or commercial property transaction offense 13 under this part constitutes a separate violation. 14 §46.104. Mortgage Fraud Prosecutor and Investigators. (a) 15 The Attorney General may employ: 16 (1) An attorney licensed to practice law who: 17 (A) has knowledge of the law related to mortgage 18 fraud;and 19 20 21 22 23 24 25 (B) if possible, has a background or expertise m investigating and prosecuting mortgage fraud. (2) At least two (2) investigators who have a background or expertise in investigating mortgage fraud. (3) The attorney employed under Subsection (a) (1) has as that attorney's primary responsibility the prosecution of mortgage fraud. 5 1 2 3 4 5 ( 4) Each person employed under Subsection (b) shall have as that person's primary responsibility the investigation of mortgage fraud. (5) clerks, interns, or other personnel to assist the attorney employed under Subsection (a) (1)." 6