Law Library | Attorney Advertising | Financial Services | Affiliate Program | Blawg
Find the Right Lawyer Now:
Common Examples of Mortgage Loan Fraud
Providing false or incorrect information on a loan application is mortgage fraud. According to the FBI, mortgage loan fraud is one of the fastest growing forms of white collar crime in the United States. While mortgage fraud comes in a number of different forms, some types are more commonplace than others.
One of the most common forms of mortgage fraud is for the borrowers to overstate their income. This allows them to qualify for a higher loan. One way of doing this is by claiming self-employment, while another common method is to alter an employer-issued W-2 to reflect a higher income.
Another form of mortgage fraud is to treat a loan as a gift. Often people will borrow money from their family in order to make a down payment on a property. However, treating this as a gift reduces the amount of debt you appear to have, possibly causing the lender to approve a loan it would otherwise reject.
Occupancy fraud is another common type of mortgage fraud. This is when a borrower wants to obtain a mortgage in order to purchase an investment property, but claims that they will actually live in the property. Lenders usually charge higher interest rates for investment property mortgages, since these are considered riskier loans for lenders.
It is important to note that many people who commit mortgage loan fraud do so at the urging of a real estate agent hoping to close a deal. If you have any questions or concerns about mortgage fraud, it is a good idea to consult with an experienced criminal defense attorney or real estate attorney before making a potentially disastrous mistake.
Consult a Lawyer - Present Your Case Now!
Find the Right Lawyer Now:
Did you find this article informative?
