Mortgage fraud is one of the most common white-collar crimes committed in the United States. People frequently think of mortgage fraud as the result of some complex scheme, which is true in some cases.
However, the average case of mortgage fraud may simply involve a few people making the wrong choices and misrepresenting their circumstances. Most cases of mortgage fraud clearly fall into one of two categories, and those in the first category explained below often do not view their acts as malicious or criminal in nature.
Mortgage fraud for housing
Buyers facing high interest rates and high prices for properties are in a difficult position. They need more financing than ever before to acquire basic housing. They might exaggerate their income or personal holdings as a means of qualifying for a higher total mortgage amount or better loan terms.
Mortgage fraud for housing may seem like a victimless crime because someone thoroughly intends to follow through on their financial obligations. However, people can still default and might face prosecution if that occurs.
Mortgage fraud for profit
Professionals assisting buyers may sometimes encourage them to misrepresent the facts on mortgage applications. Other times, they may actually make changes to their documents without informing their clients. Some mortgage fraud for profit schemes are even worse than that. They involve falsifying ownership records or fabricating a property in the pursuit of financial gain. Such operations are more likely than mortgage fraud for housing scenarios to lead to losses for lenders and prosecution of the parties involved.
Those accused of involvement in white-collar crimes may face incarceration and financial penalties. Assertively responding to white-collar criminal allegations can help people to avoid life-altering consequences, when possible.
