Mortgage Lender Fraud is different from any unintentional misreporting to the lender while applying for a mortgage. However, if a borrower manipulates information, presents fake data, or withheld information solely to get mortgage finance, then they are committing a fraud, which is a criminal offense.
There are fraud borrowers or brokers that may misrepresent information to get lending. For instance, the borrower may present collateral such as property, where the property is not in borrower possessions, and he is only renting that place to get a mortgage. Likewise, people can fake their proof of income, create false employment certificates, and provide counterfeit documents to secure a mortgage. These are all illegal activities, and if a person gets caught, he can face many penalties. It can also allow the lender to cancel the mortgage plan, especially if the applicant was doing intentional fraud.
