To many people, mortgage fraud is synonymous with intentional misappropriation of funds. They think of people who fabricate transactions, possibly involving a fraudulent deed for a home not listed. Sometimes, people even manage to scam lenders by convincing them to fund a transaction for a property that does not exist.
Mortgage fraud for financial gain is relatively common, but it is far from the only type of mortgage fraud reported and prosecuted in the United States. People are also at risk of criminal prosecution in cases involving mortgage fraud for housing.
Intentional harm is not necessary for fraud charges
Prosecutors do not need to prove that an individual intended to personally profit off mortgage fraud by defaulting and costing the lender thousands of dollars. They simply need to show that the person seeking the mortgage knowingly and intentionally misrepresented their circumstances to convince a lender that they qualified for a mortgage when they truly did not.
Mortgage fraud might involve the use of someone else’s personal identifying information. It could entail exaggerating income or fabricating valuable assets that a person does not actually own. While the goal may simply be to acquire housing, the potential impact of the fraud is the same. The lender takes a risk that the company would not accept if it had accurate information about the situation.
Individual property owners, mortgage brokers and others involved in a real estate transaction could end up accused of mortgage fraud even if the goal is to obtain housing, not to financially benefit from deceiving a mortgage lender. Discussing the details included on a mortgage application with a white-collar criminal defense attorney can help people understand the case against them and begin strategizing to fight mortgage fraud allegations accordingly.