Mortgage Application Fraud
Before you sign a mortgage application or any other loan documents, carefully review them to make sure they are complete and accurate. If you become aware of mortgage fraud, report it.
Hello. I’m a special agent with the FBI. And this is A Mortgage Minute for the Average Joe. Today’s topic—making sure the mortgage application you sign is complete and accurate. More than half of the mortgage fraud cases we work at the FBI involve fraud on the mortgage application.
There are lies about how much income the borrower makes, where they work and how much debt they already owe. They also lie about who will occupy the house. Income fraud occurs when the borrower overstates his income in order to qualify for a mortgage. This was very common during the past few years as home values dramatically increased and people bought homes they couldn’t afford.
Employment fraud occurs when the borrower lists his employer as a company he doesn’t really work for. In some cases, it’s a fake company all together.
Another type of fraud occurs when the borrower does not disclose all of his financial obligations, including other existing mortgages, car loans or credit card debts on the application.
Occupancy fraud occurs when the borrower states on the application that they intend to live in the home they are buying when it’s actually an investment property.
So before you sign a mortgage application or any other loan documents, carefully review them to make sure they are complete and accurate. If you become aware of mortgage fraud, you are encouraged to contact your local FBI office and report it.
This segment of A Mortgage Minute for the Average Joe has been brought to you by the FBI.
- 11.18.2020 — Highlights from Director Wray's Remarks at World Economic Forum Annual Meeting on Cybersecurity
- 11.18.2020 — FBI San Diego Thanksgiving Message
- 11.13.2020 — Remarks by Sanjay Virmani About IRGC Covert Influence Campaign
- 11.10.2020 — FBI Tampa Veterans Day Message
- 11.02.2020 — FBI Buffalo and U.S. Attorney Remarks on Integrity and Security of Elections
- 10.23.2020 — Zach Gusé: I Wanted to Let the Light In
- 10.23.2020 — Brent Gillespie: Please Come Forward
- 10.22.2020 — Branson Jernigan: It Seems Like People Have Been Forgetting About Her
- 10.21.2020 — Fresno’s Breaking the Chains Receives FBI Director’s Community Leadership Award
- 10.20.2020 — Kole Gusé: She's Probably Dead
- 10.19.2020 — Melissa Gusé: Damaged Family
- 10.18.2020 — Zach Gusé: I Lost My Mind
- 10.17.2020 — David Kaulk: We May Never See Her Again
- 10.16.2020 — Brad Bilderback: Somebody Knows Something
- 10.15.2020 — Proteger Su Voto
- 10.15.2020 — FBI Pittsburgh Remarks on QQAAZZ Indictment
- 10.15.2020 — Richard Eddy: Witness
- 10.14.2020 — Melissa Gusé: Your Mind Wanders
- 10.13.2020 — Chicago FBI Asks Public to Assist on Election Security
- 10.13.2020 — Zach Gusé: My Whole Body and Soul