What Is Mortgage Fraud?
When most people think of fraud-related crimes, they picture credit card schemes and ticket scalpers. However, did you know that some people commit fraud using their mortgages? In this blog post, a Denver white collar crimes attorney will review several common forms of mortgage fraud.
Mortgage Fraud for Housing
Mortgage fraud for housing is when a borrower omits or misrepresents relevant details about their employment, income, credit score, property value, or other financial information to secure or maintain ownership of a property. At first glance, mortgage fraud for housing seems complicated, but it isn’t always that way.
For example, let’s assume a small business owner is at risk of losing their home. Instead of letting that happen, they take out a business loan, makeup business expenses, and pay off their mortgage debt. In this situation, the person is committing mortgage fraud for housing because their primary goal is to keep their home.
Mortgage Fraud for Profit
Mortgage fraud for profit is when industry professionals (real estate agents, loan officers, builders, appraisers, etc.,) misrepresent, misstate, or omit relevant details about their personal or clients’ employment and income, debt, credit, or property value to maximize profits on a loan transaction.
For example, let’s assume a loan officer is friends with someone applying for a mortgage. Although the person is not a suitable candidate for the mortgage loan, the loan officer approves the loan despite their credit in return for a kickback from the owner. In this situation, the loan officer is committing mortgage fraud for profit because their primary goal is to make money off of the fraud.
Need Representation for Mortgage Fraud?
If you or a loved one is accused of mortgage fraud, you’ll need an experienced white collar criminal defense attorney on your side. Attorney Kevin Cahill has decades of experience representing clients and fighting for their rights. If you want an award-winning attorney on your case, you want Kevin Cahill.
Call (720) 548-2990 now for a free consultation concerning your mortgage fraud case.