Mortgage fraud troubles

On Behalf of | Aug 30, 2022 | White Collar Crimes

A mortgage provides the means for most people to purchase a home. A home loan approval could make it possible for someone to acquire a preferred property in Florida, and the property could turn into a lucrative, equity-building investment. Some would-be borrowers may worry about their chances of approval, so they may be untruthful on the mortgage application. Such actions could leave them open to criminal charges.

Acts of mortgage fraud

When a mortgage applicant fills out the necessary loan paperwork, they must provide truthful answers. However, someone could overinflate their income while downplaying monthly expenditures as a way to move the loan officer toward approval. Such actions are deliberate deceptions and fraud since the bank ends up relying on false information to issue the loan. In short, the applicant seeks to obtain a loan that would otherwise likely be denied.

The applicant is not the only person who may commit fraud. Professionals involved in the mortgage industry could also commit illegal actions. An appraiser could work with a mortgage broker or bank officer to run a scheme where homes receive better or worse appraisals than they deserve. Many mortgage fraud schemes run by professionals are ways to steal money from unsuspecting persons.

Facing legal troubles from mortgage fraud

Not everyone who provides false information on a loan application intentionally commits mortgage fraud. Some people make honest mistakes, but those errors could have consequences, especially if the lender thinks the applicant is attempting to con them. Negligent mistakes or oversights may lack the intent to prove fraud beyond a reasonable doubt.

Misunderstandings could lead to mortgage professionals facing criminal investigations. Of course, law enforcement officials must not violate anyone’s rights. Procuring evidence illegally may harm the case against any defendant.