In addition to health care fraud and government contracts fraud, the False Claims Act is also essential in the fight against mortgage fraud. While it is a phrase that few of us knew 15 years ago, mortgage fraud exploded in the first decade of the new millennium and it continues to be a major threat to our nation’s economy. Individual whistleblowers, people who see fraud and speak up, are the key to fighting back and our mortgage fraud lawyer is proud to partner with them in this important battle.
A Brief Overview of Mortgage Fraud
Before diving into a recent case, some readers may find a brief definition of mortgage fraud helpful. In its Mortgage Fraud Overview, the Federal Bureau of Investigations (“FBI”) explains: “Mortgage fraud is a crime characterized by some type of material misstatement, misrepresentation, or omission on a loan which is then relied upon by a lender.” The FBI goes on to note that there are two broad categories of mortgage fraud: 1) Fraud for housing which is typically perpetrated by a borrower looking to acquire property and 2) Fraud for profit which is typically perpetrated by financial institutions and industry leaders. Our focus in this post is on the latter, also the type of fraud blamed for the subprime mortgage crisis.