White-collar crimes are on the rise in New York and the rest of the nation. The reasons for this are sometimes hard to understand. One of the biggest culprits is the fact that many people can commit these crimes without even being aware of it. However, the penalties for doing so are as harsh as if the act was willful.
Fraud related to mortgages is rising
Mortgage fraud is a crime that is much easier to commit than you may realize. The definition of mortgage fraud is listed as any kind of false statement or omission, by mistake or otherwise, that is made in relation to a loan. The crime is compounded if a lender relies on this info to influence their decision.
Even if you didn’t intend to lie in your application, it can still be considered fraud. The decision a lender makes regarding loan approval, reduction in payment, or other changes in the term of a loan is based on false info. If this causes harm down the road, they can charge you with committing this crime.
You need to avoid accidentally committing fraud
Fraud involving mortgage loans is one of the most prevalent types of mortgage fraud. Recent studies have shown that 1 in 109 mortgage applications in 2018 showed some evidence of fraud. In most cases, the lender was the victim. However, buyers and sellers can also be targeted for fraud. This also occurs when a mistake made by an applicant is genuine.
The best way to avoid committing this type of fraud by accident is to carefully check every source of info that you provide. Make sure to get accurate numbers for your income and savings. Work with a financial adviser to ensure that your statement is fully accurate.