OR 3.0 hours Fair Housing, Discrimination, and the Market Place Course Syllabus
3.0 Elective Hours
Mortgage fraud is a crime in which the intent is to misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known all of the facts. In US federal courts, mortgage fraud is prosecuted as wire fraud, bank fraud, mail fraud and money laundering, with penalties of up to 30 years imprisonment. Some states have also begun to enact their own penalties for mortgage fraud as the incidence of it has risen.
The "mortgage meltdown" was caused, in part, when large numbers of borrowers in areas of rapidly increasing home prices lied about their income, acquired homes they could not afford, and then defaulted.
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 coexist with mortgage fraud. Types of mortgage fraud might include occupancy fraud, income fraud, employment fraud, failure to disclose liabilities, appraisal fraud, and cash-back schemes.
Upon completion of this course, the real estate professional will have a better understanding of the different types of mortgage fraud. Case studies and examples are presented to provide a better insight.