The government takes all forms of financial institution fraud quite seriously. One of the illegal actions that falls into this category is mortgage fraud. While it can take several forms, at its core it involves misrepresenting financial records or omitting facts in order to qualify for a mortgage, approve loans or accept a payoff that’s been reduced based on those fraudulent figures.
Mortgage fraud is a big contributor to the destabilization of the housing market, which can affect the national economy as well as the world markets. Let’s delve a bit deeper into the matter.
Mortgage fraud to reap profits
This type of financial fraud is usually committed by those working inside the industry, including:
- Mortgage brokers
- Appraisers
- Banking officers
- Loan originators
- Real estate attorneys
These fraud-for-profit cases can include collusion between several defendants involved in the illegal scheme. The end result is that homeowners and lenders lose their equity or cash due to the alleged actions of the accused.
Fraud for housing
Sometimes, a home buyer is so eager to purchase a home that may be out of their price range that they creatively misrepresent their financial information on their loan application. They may get caught when they are unable to afford their mortgage payments each month.
Other ways to get caught
The Federal Bureau of Investigation (FBI) has a task force specifically focused on financial crimes. They utilize the resources of local, state and federal law enforcement agencies and regulatory boards to share vital information concerning financial crimes like mortgage fraud. They can also loop in private industries in the mortgage and banking fields to access more data when building a case.
Get serious with your defense strategy
As you can see, facing charges of mortgage fraud demands an aggressive defense to the allegations. Learning more about relevant state and federal laws can help you craft the best defense to fit your circumstances.