If you think you have been involved in a mortgage fraud that involves securities, please contact the Alberta Securities Commission, Public Inquiries at 1-877-355-4488.

What happens when someone commits mortgage fraud?

Mortgage fraud is a serious offense and can lead to prosecution and jail time for convicted offenders. Under U.S. federal and state laws, mortgage fraud can result in up to 30 years in federal prison, and up to $1 million in fines.

What happens if you lie on mortgage application?

If you are caught lying on a mortgage application, your lender could demand that you repay the entire loan immediately or foreclose and take back your home. The FBI may also get involved and charge you criminally.

How does the FBI define mortgage fraud?

According to the Federal Bureau of Investigation (FBI), it is any sort of “material misstatement, misrepresentation, or omission relating to the property or potential mortgage relied on by an underwriter or lender to fund, purchase, or insure a loan.”

How can I hide my mortgage debt?

Here are five sure-fire ways for your clients to reduce debt and reach an acceptable DTI:

1. Become debt-conscious.
2. Pay off small balances.
3. Reduce interest and consolidate monthly payments.
4. Stop buying on credit.
5. Start with FHA.

Does the FBI investigate mortgage fraud?

The FBI and other entities charged with investigating mortgage fraud, particularly in the wake of the housing market collapse, have broadened the definition to include frauds targeting distressed homeowners. The FBI prioritizes fraud for profit cases.

Who is involved in mortgage fraud for profit?

Many times mortgage fraud for profit involves collusion by industry insiders, such as bank officers, appraisers, mortgage brokers, attorneys, loan originators, and other professionals. Fraud for profit focuses on misusing the mortgage lending process to get cash and equity from lenders or homeowners.

What to do if you suspect mortgage fraud?

Make sure to contact your mortgage lender or financial institution immediately so they flag any potential mortgage fraud or identity theft as soon as possible. Document your conversations and keep paperwork in a secure location so you can access as needed through the identity theft recovery process.

How is identity theft a form of mortgage fraud?

The cash gift usually helps the buyer make a down payment, potentially covering up some serious financial issues. Identity theft is a particularly threatening form of mortgage fraud, as it tends to lead directly toward homeowner financial loss.

How long can you go to jail for mortgage fraud?

Under U.S. federal and state laws, mortgage fraud can result in up to 30 years in federal prison, and up to $1 million in fines. Mortgage fraud is a growing problem. According to CoreLogic, mortgage fraud increased 16.9% in the second quarter of 2017 vs. the prior year.