mortgage fraud


Criminal act of deceiving or intentionally misrepresenting information on a mortgage application so that a borrower can be approved for a loan. This type of fraud typically involves falsifying earnings statements and assets, so that it appears that the lender has more leverage than he/she truly has. Mortgage fraud was one of the main factors that led to the subprime crisis in the United States. As with any act of fraud, this action can result in criminal prosecution.

Use mortgage fraud in a sentence

The man was being sued for mortgage fraud and he was really unhappy because he did not want to get sued at all.

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A close friend of mine committed mortgage fraud when he attempted lied on a application to acquire a loan from a bank.

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The young couple had variable incomes, and when they showed only their highest-earning pay stubs to the mortgage company they were actually inflating their income, thereby committing mortgage fraud.

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