What is MORTGAGE FRAUD? What does MORTGAGE FRAUD mean? MORTGAGE FRAUD meaning & explanation

What is MORTGAGE FRAUD? What does MORTGAGE FRAUD mean? MORTGAGE FRAUD meaning & explanation. Mortgage Definition Investopedia

What is MORTGAGE FRAUD? What does MORTGAGE FRAUD mean? MORTGAGE FRAUD meaning & explanation video duration 8 Minute(s) 58 Second(s), published by The Audiopedia on 03 04 2017 - 11:00:00.

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http://www.theaudiopedia.com What is MORTGAGE DISCRIMINATION? What does MORTGAGE DISCRIMINATION mean? MORTGAGE A mortgage is an agreement that allows a lender to take property when a borrower fails to pay
In most cases the term mortgage is used to refer to a home loan A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set.

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What is MORTGAGE FRAUD? What does MORTGAGE FRAUD mean? MORTGAGE FRAUD meaning - MORTGAGE FRAUD definition - MORTGAGE FRAUD explanation.

Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.

Mortgage fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application in order to obtain a loan or to obtain a larger loan than could have been obtained had the lender or borrower known the truth.

In United States federal courts, mortgage fraud is prosecuted as wire fraud, bank fraud, mail fraud and money laundering, with penalties of up to thirty years imprisonment. As the incidence of mortgage fraud has risen over the past few years, states have also begun to enact their own penalties for mortgage fraud.

Mortgage fraud is not to be confused with predatory mortgage lending, which occurs when a consumer is misled or deceived by agents of the lender. However, predatory lending practices often co-exist with mortgage fraud.

Types od mortgage frauds:

Occupancy fraud: This occurs where the borrower wishes to obtain a mortgage to acquire an investment property, but states on the loan application that the borrower will occupy the property as the primary residence or as a second home. If undetected, the borrower typically obtains a lower interest rate than was warranted. Because lenders typically charge a higher interest rate for non-owner-occupied properties, which historically have higher delinquency rates, the lender receives insufficient return on capital and is over-exposed to loss relative to what was expected in the transaction. In addition, lenders allow larger loans on owner-occupied homes compared to loans for investment properties. When occupancy fraud occurs, it is likely that taxes on gains are not paid, resulting in additional fraud. It is considered fraud because the borrower has materially misrepresented the risk to the lender to obtain more favorable loan terms.

1. Income fraud: This occurs when a borrower overstates his/her income to qualify for a mortgage or for a larger loan amount. This was most often seen with so-called \