Mortgage Fraud

Mortgage fraud occurs when individuals or groups deceive lenders to gain an improper financial advantage in obtaining a mortgage. This can involve misrepresenting income, falsifying documents, or inflating property values. Common types include "income fraud," where a borrower provides false financial information, and "appraisal fraud," where property values are artificially inflated to secure larger loans. The consequences can be severe, leading to legal action, financial losses, and market instability. Understanding and preventing mortgage fraud is essential for maintaining trust within the real estate and lending industries.