If you’ve been in the mortgage industry for more than a few years, you’ve probably heard of the Federal False Claims Act (FCA). But what does it mean and why is it important? The Federal False Claims Act prohibits fraudulent activities against the federal government and imposes civil penalties on those who have violated this law. Under the FCA, an individual or company can be sued for making false or fraudulent claims to obtain money from the federal government. In recent years, more and more cases of mortgage fraud have been coming to light. This article will discuss how to recognize mortgage fraud and what your rights are under the FCA if you suspect someone is committing mortgage fraud.
The Federal False Claims Act and Mortgage Fraud: What You Need to Know
Mortgage fraud is a serious issue and it’s important to know what you’re dealing with. Lenders may be committing mortgage fraud if they knowingly submit false information on mortgage applications or one of their employees does so. If you suspect someone of mortgage fraud, it’s imperative that you speak up.
The Federal False Claims Act prohibits fraudulent activities against the federal government and imposes civil penalties on those who have violated this law. Under the FCA, an individual or company can be sued for making false or fraudulent claims to obtain money from the federal government. Whistleblowers whose information leads to the government getting money from the action may be eligible for a monetary reward. In recent years, more and more cases of mortgage fraud have been coming to light.
Mortgage fraud is when someone falsifies information in order to get a home loan. They can do this in many different ways, such as by providing false information on the loan application or submitting forged documents. Mortgage fraud is a serious problem and has become more prevalent as the housing market has become more competitive.
Mortgage fraud has been a major problem for more than a decade. The goal of mortgage fraud is to get money from the federal government by making false or fraudulent claims.
Some examples of mortgage fraud are:
Claiming false income on loan applications
Falsifying employment history
Falsely claiming occupancy status
Falsifying records to qualify for an FHA or VA loan
Concealing high debt ratios
Claiming more than one residence as a primary residence where government money is implicated
Applying for an ineligible loan program, including some loans at the state level, with the intent to default on it later.
There are two other types of mortgage fraud to be on the lookout for: construction and resale. Construction fraud occurs when the value of real property is misrepresented or inflated to secure lending approval. Resale fraud occurs when a property that does not meet federal standards is sold as if it does, usually through stealing identities and falsifying documents.
Conclusion
Mortgage fraud has been on the rise in recent years, as the housing market has largely recovered since the Great Recession.
In order to combat fraud, it's important to know what you're dealing with. Keep in mind, there are different kinds of fraud and it is important to know the law and your rights. It's also important to know how to report fraud when you see it happening.
If you suspect someone is committing mortgage fraud, contact Whistleblowers International. We are a law firm dedicated to helping whistleblowers like you seek justice and potentially earn a reward for doing so.