§ 1011
Federal land bank mortgage transactions
Official text prohibited actmental stateif conditionpenaltylegal term
Whoever, being a mortgagee, knowingly makes any false statement in any paper, proposal, or letter, relating to the sale of any mortgage, to any Federal land bank; or
Whoever, being an appraiser, over-values any land securing such mortgage—
Shall be or imprisoned not more than one year, or both.
History: (June 25, 1948, ch. 645, 62 Stat. 751 (PDF, 39 MB); Pub. L. 103–322, title XXXIII, §330016(1)(K), Sept. 13, 1994, 108 Stat. 2147 (PDF, 52 MB).)
Simplified explanation
It is a federal crime for a mortgage holder to knowingly make false statements to a Federal land bank about selling a mortgage. It is also a crime for an appraiser to willfully overvalue the land backing such a mortgage.