Mortgage Fraud Law and Legal Definition
Mortgage fraud refers to fraud related to mortgages or equities. It includes a wide variety of criminal actions. Basically, in a mortgage fraud, a borrower materially misrepresents or omits information on a mortgage loan application to secure a loan or to obtain a larger loan. Mortgage fraud includes application fraud, wire fraud, bank fraud, mail fraud, and money laundering. Occupancy fraud, income fraud, employment fraud, failure to disclose liabilities, fraud for profit, appraisal fraud, shortgunning, and identity thefts are examples of mortgage fraud.