What is mortgage fraud?

Mortgage fraud is a type of consumer fraud law that occurs in the Oklahoma real estate market. It happens when somebody knowingly misrepresents, conceals or misrepresents information to an Oklahoma mortgage lender in order to get a loan, obtain new loan terms or get a lower interest rate. Mortgage fraud can come in many forms, such as a borrower lying on their loan application, an appraiser intentionally inflating the value of a home, or a mortgage broker overstating a borrower’s income. Mortgage fraud can also involve loan “flipping” or “straw buying” in which someone purchases a home and then quickly sells it after obtaining a fraudulent mortgage. Mortgage fraud can be particularly damaging to Oklahomans as it often results in foreclosures that reduce the value of their homes. Additionally, mortgage fraud can cost lenders millions of dollars and lend to more foreclosures, further depressing the real estate market. In Oklahoma, it is illegal for anyone to engage in mortgage fraud and suspects may be subject to criminal and civil penalties.

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What is mortgage fraud?

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