Examples of Mortgage Fraud
Mortgage fraud is a white-collar crime that generally relates to using deceptive practices with lenders or underwriters for personal financial gain, and it often relates to obtaining mortgage loans by misrepresenting key information. Ultimately, mortgage fraud can take many different forms, and if you’re facing such a charge, the stakes are too high not to consult with an experienced Greenville mortgage fraud defense attorney as soon as you’re able to do so.
Fraud that Involves the Applicant’s Income or Assets
Mortgages are based directly on the ability of applicants to pay them back, which means that information like the following is taken into careful consideration:
- Employment and income
- Overall assets
- The value of the property owned
When this information is misrepresented, it can support a charge of mortgage fraud, and this is true even when the borrower has every intention of faithfully repaying the amount owed.
Appraisal Fraud
Mortgages are predicated on the value of the home being purchased, and mortgage lenders rely on accurate information in the calculation of fair terms. When a borrower uses their influence to artificially skew an appraisal to obtain a more favorable loan, it can amount to mortgage fraud. The illegal act can translate to incentivizing the appraiser financially or can be a function of the accused person’s close personal relationship with the appraiser.
Concealment Fraud
When a borrower conceals material information from the lender, it can rise to the level of mortgage fraud. Prime examples include concealing the fact that the borrower has another mortgage, hiding other debts, artificially inflating income, or misrepresenting the intended use of the property in question.
Straw Buyer Mortgage Schemes
Straw buyer mortgage schemes involve purchasing a property on behalf of someone else when something stands in the other person’s way of doing so or when they choose not to make the purchase themself. This involves fraudulently making financial arrangements that will ultimately be managed by someone else, which leaves the lender in the dark. Such schemes do not require the element of identity theft – in fact, the person who negotiates the deal is often paid for their participation by the actual purchaser.
Occupancy Fraud
Buyers must also be upfront about their reasons for purchase. For example, it is illegal to purchase a home for the purpose of occupying it when you intend to use it as an investment.
Professional Mortgage Fraud
The buyer is not the only party that can engage in mortgage fraud. Professional mortgage fraud refers to professionals – such as loan officers, mortgage brokers, or appraisers – who engage in fraudulent practices that are often a part of a broader scheme to artificially increase their commissions and profits. This is an illegal practice that amounts to stealing.
Turn to an Experienced Greenville Mortgage Fraud Defense Lawyer for the Help You Need
The knowledgeable legal team at Ryan Beasley Law in Greenville, SC, is committed to building a strong defense that supports your rights and that helps to ensure an advantageous outcome. Your future is important, so please don’t put off reaching out by contacting us online or calling us at 864-756-4204 today.