Mortgage Fraud
Mortgage fraud is one of the most serious and complex forms of financial crime. It involves deception in one form or another to defraud a bank, broker, mortgage company, lender, insurance company, government agency or any other person. It is often associated with other criminal acts such as securities fraud and money laundering.
The term mortgage fraud is often used interchangeably with "fraudulent mortgage applications" and "loan fraud." Although mortgage fraud is sometimes used in conjunction with other types of fraud, it is often its own category. Mortgage fraud typically refers to an intentional misrepresentation, misstatement or omission of material information to apply for a mortgage, purchase or refinance a mortgage or loan. However, it may also involve an action that is fraudulent but the person committing the act does not know it is illegal. In this case, the person would be guilty of both mortgage fraud and the more general crime of falsifying documents.
Mortgage fraud by definition can be committed by any person. However, the most common type of mortgage fraud is executed by mortgage brokers. Mortgage brokers commit the crime at the federal level when they intentionally lie on federal applications for mortgage loans or when they commit fraud at the federal level. Mortgage fraud at the federal level is punished by jail time. Mortgage brokers who work at the national level are more likely to face prison time than mortgage brokers who work at the state level.
Fraudulent mortgage lenders are only one type of entity that can commit mortgage fraud.
A person can also falsify a tax return, report a deceased taxpayer as an individual, commit insurance fraud, use false appraisals or inventories, commit tax fraud, falsely bill income or expenses to a business or another person, falsely report a lost transaction, falsely certify the sale or transfer of a property, obtain a property under false pretenses, obtain property using a false warranty, commit bank fraud, use forged documentation to obtain a mortgage, obtain property using a false or stolen passport, steal property or access secured areas of a school, bank, or other facility, falsely represent the cost or value of a transaction or asset, falsely testify about ability to pay off a debt, commit insurance fraud, obtain a property or vehicle with false information, commit fraud or launder money, misrepresent information in a real estate transaction, commit grand theft, falsely advertise a product or service, possess an illegal weapon, embezzle money or property, and travel abroad to conduct criminal activities. When it comes to higher crimes such as those which are committed at the federal level, individuals who lie on federal applications or falsify tax returns can face jail time. Click on this website for a more comprehensive info on the above topic.
If you're involved in property flipping, you may need to hire an appraiser to determine the value of your property before you purchase it. This will help you determine whether you will be able to pay the mortgage loan or not. An appraiser will usually look at the house, yard, building materials, the condition of the roof and other major components of the property and make their opinion on what the value of the property should be before they value it. Appraisers can also determine if a home is structurally sound by looking at the roof, basement, exterior walls and other components of the house. In many instances, the appraiser will ask you to bring your plans for the property so he can make his estimate based on those plans. It's important to note that if you lie on your appraisal application or any other information provided to a lender during the process, a lender may have reason to file criminal charges against you.
In today's lending market, it is easy for homeowners to fall victim to loan officers who engage in a number of scams. Discover more info on this article, for you to learn more about this service on this topic.
Mortgage fraud is not limited to the real estate industry. Loan officers in the mortgage processing industry have also been targeted for fraudulent practices. The best solution for preventing these types of scams is to only deal with licensed loan officers who follow federal guidelines and laws for dealing with distressed borrowers. When you choose to deal with licensed, bonded loan officers, you can be confident that you are working with a group of professionals who are focused on meeting the needs of homeowners and helping them obtain the mortgage they deserve. Check out this post that has expounded on the topic: https://en.wikipedia.org/wiki/Criminal_defense_lawyer.
