What is mortgage fraud?

Mortgage fraud is a type of consumer fraud law in Kansas that involves the intentional misrepresentation or omission of information by a borrower or other party in order to obtain a mortgage loan. Mortgage fraud may involve either residential or commercial mortgages. Examples of mortgage fraud include falsifying income, assets, or debt in order to qualify for a loan, obtaining a loan through identity theft, misrepresenting the purpose of a loan, or engaging in a transaction with another party without the lender’s knowledge or approval. In most cases, mortgage fraud is perpetrated by the borrower and is only discovered after the loan has been approved. Mortgage fraud is a crime in Kansas punishable by a variety of penalties, including fines, jail time, and restitution for the mortgage lender. The severity of the penalty depends on the extent and seriousness of the fraud. Kansas enacted a Mortgage Fraud Prevention Act to help deter mortgage fraud and protect consumers by requiring mortgage lenders to better detect and prevent fraud. This act requires lenders to create and maintain written policies and procedures to identify, prevent, and report mortgage fraud. Mortgage fraud can be a costly crime, with victims losing significant amounts of money, so it is important for Kansas residents to familiarize themselves with the state’s consumer fraud laws.

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What is mortgage fraud?

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