Loan Application Fraud by Consumers
Consumers will lie on their loan application in order to qualify for the purchase of real estate. The lies can involve the inflation of income, fake w-2’s, tax statements, false employment, false income stream, and phony bank accounts. Consumers misrepresenting any of the above can be found guilty of mortgage fraud. Tip for consumers: ask for an advance copy of your loan application, aka 1003, and check your employment and income information. If it is not true, make sure that your lender, loan officer, or broker corrects it, because if you sign the document knowing that the information is false, you could be guilty of mortgage fraud. Click on the most commonly used documents to commit fraud to see an example of the Loan Application and 1003.
Loan Application