- Mortgage fraud is when information is falsified or withheld during the application process to manipulate the loan’s terms or a bank’s decision to approve it.
- Both borrowers and homeowners can commit mortgage fraud — or they can be victims of it.
- Scams targeting homeowners facing foreclosure are some of the most common types of mortgage fraud.
Mortgage fraud is a serious offense, and it’s one that borrowers and homeowners can both commit and be victims of.
When fraud is committed by mortgage borrowers, it’s often because they wanted to buy a home but believe their finances would prevent them from getting approval. Things like lying on your mortgage application or misrepresenting your income are considered mortgage fraud and come with serious…
