Real estate and mortgage fraud have significant economic consequences, leading to financial losses for lenders, eroding consumer confidence, and potentially destabilizing the broader financial system.

Mortgage fraud is characterized by a material misstatement, misrepresentation, or omission in relation to a mortgage loan, which the lender realizes on the information to make credit decision.  Civil and criminal penalties for mortgage fraud at the state and federal level can be severe and may include convictions​​ and prison time, restitution payments, state fines, and/or probation.  We serve financial institutions and are committed to the detection and prevention of mortgage fraud in the secondary mortgage market.  We participate in working groups with fellow regulatory and law enforcement agencies to foster open communication and collaboration in prevention and prosecution of fraudulent activity involving mortgages and other financial instruments.  Potential homebuyers, homeowners, distressed homeowners, and individuals employed in the mortgage industry should be aware of mortgage fraud schemes perpetrated in connection with home loan origination and throughout the life of a mortgage.

Mortgage fraud takes two primary forms:  Fraud for Profit and Fraud for Housing.  Fraud for Profit  generally involves industry insiders such as appraisers, brokers, and loan originators.  Such schemes aim to gain cash or home equity through abuse of the mortgage lending process.  Fraud for Housing  primarily consists of illegal actions by borrowers motivated to acquire or maintain ownership of a home.  Mortgage fraud can occur through the actions of borrowers and through the actions of mortgage industry professionals in connection with obtaining a mortgage loan.  Losing money or property to fraud can be devastating.

Our resources can help your organizations identify and mitigate risks associated with fraudulent mortgage activities, offering expertise in fraud detection, prevention strategies, and compliance with regulations.  Additionally, we help you with evaluating, mitigating, and monitoring the risk of fraud and misconduct and coordinate with the appropriate governmental agencies to report fraud.  We leverage analytic tools and techniques to identify red flags to identify potential fraud and misconduct within and outside of your organization.

Real estate fraud can take many forms.  It encompasses various deceptive practices that include mortgage fraud, title fraud, foreclosure fraud, identity theft, unauthorized loans against property, forgeries, unauthorized transfer of ownership, appraisal fraud, home inspection fraud, equity skimming and stripping, and much more, which aim to illegally gain financial or property advantages. Real estate fraud is a serious issue that can have devastating financial consequences and affect everyone involved in the real estate market, including buyers, sellers, lenders, property owners, renters, and other service providers.  Safeguarding against real estate fraud requires education, vigilance, and collaboration.  By understanding the types of fraud and warning signs, you can protect yourself from financial harm and preserve the integrity of the real estate market.  We offer valuable resources and tools to help you enhance due diligence and safeguard against fraud.