Mortgage fraud is a term used to describe a broad variety of actions where the intent is to materially misrepresent information on a mortgage loan application, in order to obtain the loan. Below are several types of Mortgage Fraud

Appraisal Fraud
Appraisal Fraud occurs when an appraiser provides a misleading property appraisal report to the lender. The report inaccurately states an inflated, deceptive, or fraudulent property value.

Fraudulent Loan Documents
Fraudulent Loan Documents are false or forged mortgage loan documents such as the loan application, settlement statements, Verification of Employment (VOE) and Verification of Deposit (VOD).

Fictitious Buyer/Stolen Identity
Fictitious Buyer/Stolen Identity is a fictitious/stolen identity which may be used on the loan application. The applicant may be involved in an identity theft scheme: the applicant’s name, personal identifying information, and credit history are used without the true person’s knowledge.

Illegal Property Flipping
Illegal Property Flipping occurs when a property is purchased, falsely appraised at a higher value, and then quickly sold. What makes property flipping illegal is the appraisal information is fraudulent. The schemes typically involve one or more of the following: fraudulent appraisals, altered loan documentation, and inflated buyer income.

Quit Claim Deed Fraud
Quit Claim Deed Fraud involves a perpetrator forging a grantor’s signature on a quit claim deed. The true owner has no idea of this transaction. The quit claim deed is filed in the county recorder’s office and as a result the perpetrator appears to be the new property owner. The perpetrator then sells the property to a third party and absconds with the money before the deed transfer is discovered.