If you take out an FHA loan but don't meet the residency requirements, you could (in theory) end up being prosecuted for fraud.  

I spoke to one of their real estate commission lawyers a few months ago- and was told that any selling of real property not owned by the individual is practicing real estate without a license and subject to prosecution.

This would apply to any lease with an option to purchase - chattel or real estate.And yes, there are numerous examples of both state Attorney Generals and courts undoing deals with followup penalties and fines, and sometimes criminal prosecution, including over over 100 deals in Texas involving a single operator who is now behind bars.Regarding federal intervention into seller financing of all types, as an attorney consider the recent enthusiastic use of both UDAAP by the CFPB and state AGs and even RICO for those who use relatives and others trying to hide behind the 3 transaction rule.I'm very careful and advise our clients to do the same because of what can happen.

However, I remember reading about someone getting prosecuted for deeding a property without the knowledge of the grantee. 

As the statue words it "a buyer of equity" can be at risk for prosecution buying at a price less than the market value.CIVIL CODE SECTION 1695-1695.17http://www.leginfo.ca.gov/cgi-bin/displaycode?

@Mindy Jensen thanks for posting.If the problem is minorities being targeted and prosecuted unfairly, maybe the federal government should look at their own court system and judges.

So the landlord may be liable for both criminal prosecution, and for civil consumer protection act violations.It surprises a lot of people at BP, but I actually make a hobby of renting out legally abandoned properties that I do not own, and do not have the owner's permission to use (they are usually unlivable -but still rentable). 

Criminal prosecution requires that the landlord must either have actual knowledge of what their tenant was doing or that, given the facts available to the landlord, a reasonable person would have known their tenant was accessing child porn. 

I’ve seen cases where the tenants complained after years of paying the extra amount and the landlord was prosecuted and heavily fined. 

Just because lenders and their accomplices have not yet been prosecuted and brought to justice, does not mean they have not been acting illegally.The wording of the law that lenders twist is referring to requesting an appraiser provide additional data to further support a conclusion already made.