Understanding Mortgage Lender Fraud
Mortgage Lender Fraud is a type of forgery where the lender’s original intent is to secure a loan from the borrower through misrepresentation of facts and documents. The purpose of such fabrication is to get a higher borrowing that the lender is eligible to get on his existing records. People forge documents so they can pretend to have met the criteria of the lender and get a significant borrowing that they are not eligible for otherwise. While mortgage fraud is a criminal offense, it is a type of corruption that remains prevalent. Not only individuals attempt such practices, but there are also cases where industries have tried mortgage frauds to secure funding for their projects and business.
One of the most common forms of mortgage fraud follows material fabrication, whether it is property documents, security bonds, or other requirements of the borrowers.