Going through the mortgage application process is grueling. Lenders demand extensive documentation and long applications. Mortgage fraud cases generally involve a material misstatement, misrepresentation or omissions on a mortgage application.
This normally relates to property or income that is presented to and relied upon by the lender in making a decision whether to provide the loan and to what amount.
A critical fact in mortgage fraud cases is whether the fraudulent statement is “material“. Did the lender know about the falsehood? Did the lender conduct a diligent review before executing its decision.