What is Fraud?

Misrepresentation of material fact, done with knowledge, intent to deceive and to the detriment of another.

Why do people commit mortgage fraud?

There are basically two primary reasons:

1. Fraud for Shelter/Housing

What is Fraud for Shelter/Housing?

This type of fraud is often committed by borrowers who misrepresent their income, employment, debt or value of their property to qualify for a mortgage they would not otherwise qualify for based on Bank/ Lender or Regulatory requirements. The intent of the borrower is to repay the loan.  Fraud for Shelter/Housing is often committed by individuals (sometimes with the help of industry professionals) to:

  • Qualify for a larger loan and/or lower rate.
  • To purchase a larger home then they would otherwise qualify for

2. Fraud for Profit

What is Fraud for Profit?

This type of fraud is often committed by industry professionals who are often working in collusion or with organized crime groups with the sole intent of making a profit from the fraudulent mortgage. The fraud can be orchestrated by any industry professional or professionals involved in the Real Estate transaction (i.e. the Mortgage Broker, Real Estate Agent, Appraiser, Lawyer, Lender Underwriter etc...) Fraud for profit is often committed with one or more of the following misrepresentation(s):

  • Inflated property value – sometimes supported by a falsified property appraisal
  • Fictitious or paid purchasers
  • Identity Theft
  • Falsified loan documentation (i.e. identification, employment/income, bank statements or investments statements, Purchase and Sale Agreements, down payment etc...)
  • To purchase Real Estate; often with no intention to reside

If you misrepresent or omit any relevant information on your application to obtain a mortgage loan you are committing mortgage fraud.

Notify Us of Fraud

StopFraud@genworth.com

Stop Fraud Notification Form

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