What is Mortgage Fraud?

What is Mortgage Fraud?

Mortgage fraud, also known as loan fraud or real estate fraud, is an omission, misrepresentation or misstatement relating to the property to be purchases or the person seeking a loan.

Mortgage fraud can be perpetrated by anyone involved in the mortgage acquisition process, including home buyers, sellers, investors, developers, real estate agents, appraisers, lenders, brokers, insurers or creditors.

Many people who engage in mortgage fraud falsely represent their qualifications or the value of their collateral when applying for a loan. After they have secured the money, they steal the proceeds with no intent of paying back the borrowed sum. In most cases, the involvment of corrupt bankers or appraisers is required for the scheme to succeed.


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