Mortgage Fraud Definition
Answer:Mortgage fraud is the deliberate omission or misrepresentation of facts on the part of either the borrower or lender with the purpose of obtaining a mortgage loan.
Popular Examples of Mortgage Fraud
Stated income loans are a convenient way to overstate income in order to get oneself qualified for a large loan. Often, nonexistent income from self-employment may be claimed. Stated income loans allow for employment mortgage fraud.
A borrower seeking to fund the purchase of an investment property may claim that this is a primary residence property to get lower rates. This example of mortgage fraud is called occupancy fraud.
Other popular examples of mortgage fraud are identity thefts, appraisal fraud and mortgage fraud ring. The appraisal fraud comprises exaggerated or underpriced appraisal reports, while a mortgage fraud ring is a complex form of fraud involving identity theft and a number of participants, some of which unknowingly, with the purpose to defraud the lender of large amounts of money.
Our advice: Be sure to ask your lender about FHA loans. FHA loans have very competitive interest rates because the loans are insured by the US Federal Government. Even if you have had serious credit problems, such as bankruptcy, it is easier to qualify for an FHA loan than a conventional loan. Also, taking an FIXED rate loan while the interest rates are still low is a smart idea. Check your eligibility here:
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Common misspellings: mortage and morgage