equity skimming

equity skimming Sec. 912. Whoever, with intent to defraud, willfully engages in a pattern or practice of— (1) purchasing one-to four-family dwellings which are subject to a loan in default at time of purchase or in default within one year subsequent to the purchase and the loan is secured by a mortgage or deed of trust insured or held by the Secretary of Housing and Urban Development or guaranteed by the Veterans’ Administration, or the loan is made by the Veterans’ Administration. (2) failing to make payments under the mortgage or deed of trust as the payments become due, and (3) applying or authorizing the application of rents from such dwellings for his own use, shall be fined not more than $5,000 or imprisoned not more than three years, or both. This section shall apply to a purchaser of such a dwelling, or a beneficial owner under any business organization or trust 84 Stat. 1815purchasing such dwelling, or to an officer, director, or agent of any such purchaser. Nothing in this section shall apply to the purchaser of only one such dwelling.