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Home loan fraud takes place when a prospective homebuyer, seller, or loan provider lies or omits key information that causes home financing loan approval or terms that the applicant would not ordinarily qualify to get.
More formally, the FBI defines home loan fraudulence as any “misstatement, misrepresentation, or omission pertaining to a home loan loan that will be then relied upon with a loan provider. “
Home loan fraudulence is an offense that is serious can cause prosecution and prison time for convicted offenders. Under U.S. Federal and state regulations, home loan fraud may result in as much as three decades in federal jail, or more to $1 million in fines.
The Growth of Mortgage Fraud
Home loan fraudulence is just a problem that is growing. Relating to CoreLogic, home loan fraud increased 16.9per cent into the 2nd quarter of 2017 vs. The year that is prior. The subset that is fastest-growing of fraud is occupancy fraudulence, which occurs whenever mortgage candidates deliberately offer false home loan application information to buy a house.
Home loan fraud is in the increase for many and varied reasons: