Real Estate Brokers in Mortgage Fraud

Incidence of mortgage fraud has increased over the last couple of years. The real estate brokers have also contributed to the fraudulent activities. There are several instances when the lenders are also involved and trick borrowers into schemes that tend to siphon out money from the borrowers.

Victims of mortgage fraud include business organizations that are not too big. Individuals who don’t qualify for mortgage due to low income are also victims of the mortgage fraud. The federal investigators have identified various instances of mortgage fraud committed by real estate brokers and are working towards minimizing the incidence.

One of the most common types of unethical activity exemplifying real estate brokers in mortgage fraud include forging qualifying documents. There are several instances when real estate brokers help buyers who don’t qualify for a mortgage loan to inflate their income so they qualify for the mortgage loan.

The main aim of committing mortgage fraud is misrepresentation of the money earned from such illegal schemes. Fraudsters often tend to hide the money earned in this manner from the government. They tend to give the impression that the money that is earned through illegal means is actually legal.

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