Mortgage Fraud

AAA

DEFINITION of 'Mortgage Fraud'

Intentionally falsifying information on a mortgage loan application. The intention of mortgage fraud is typically to receive a larger loan amount than would have been permitted if the application had been made honestly.

INVESTOPEDIA EXPLAINS 'Mortgage Fraud'

In addition to individuals partaking in mortgage fraud, large scale mortgage fraud schemes are not uncommon. Mortgage fraud is such a serious problem that the United States Department of Justice and Federal Bureau of Investigation (FBI) initiated "Operation Malicious Mortgage". Penalties for mortgage fraud include fines, restitution and imprisonment up to 30 years.

RELATED TERMS
  1. Insurance Fraud

    An illegal act on the part of either the buyer or seller of an ...
  2. Straw Buyer

    A person who makes a purchase on behalf of another person. A ...
  3. Certified Forensic Financial Analyst ...

    A specialized accounting credential offered by the Financial ...
  4. Financial Forensics

    A field that combines criminal investigation skills with financial ...
  5. Securities Fraud

    A type of serious white-collar crime in which a person or company, ...
  6. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with ...
Related Articles
  1. Insurance

    Credit Scams To Watch Out For

    More than 30 million people were victims of fraud in 2007. Will you be next?
  2. Personal Finance

    4 History-Making Wall Street Crooks

    Find out how these Wall Street high-rollers landed themselves in hot water.
  3. Herbalife has been accused of running a pyramid scheme
    Active Trading

    What Is A Pyramid Scheme?

    The FTC announced it had opened an official investigation of Herbalife, which has been accused of running a pyramid scheme. But what exactly does that mean?
  4. Retirement

    The Ghouls And Monsters On Wall Street

    Learn about some of the creepiest cases of fraud and the characters behind them.
  5. Retirement

    Common Clues Of Financial Statement Manipulation

    Search for the "bloody" fingerprints in accounting crimes.
  6. Entrepreneurship

    Stop Scams In Their Tracks

    Find out how to protect yourself and your loved ones from financial fraudsters.
  7. Home & Auto

    How should you choose the amortization period for your mortgage?

    Read about key considerations that homeowners should take into account before choosing the amortization period for their mortgages.
  8. Credit & Loans

    What is the key to finding your ideal mortgage?

    Learn what steps you need to take in order to locate the perfect mortgage for your budget, lifestyle and long-term financial goals.
  9. Home & Auto

    Where are home values falling the fastest in the US, and why?

    Learn about the metropolitan areas in the United States experiencing the largest drops in median single family homes values in 2014 and the reasons behind it.
  10. FHA mortgages offer flexibility and low down payments, though they're often pricier than traditional loans backed by private mortgage insurance.
    Credit & Loans

    Before You Choose An FHA Mortgage: 7 Key Points

    FHA mortgages offer flexibility and low down payments, though they're often pricier than traditional loans backed by private mortgage insurance.

You May Also Like

Hot Definitions
  1. Risk-Free Rate Of Return

    The theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would ...
  2. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  3. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  4. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  5. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  6. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
Trading Center