Here’s one for ASIC – back to basics – lesson 1
Mortgage Fraud Defined by the FBI
https://www.fbi.gov/stats-services/publications/mortgage-fraud-2009
Mortgage fraud is a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan.
Mortgage loan fraud is divided into two categories: fraud for property and fraud for profit.
Fraud for property/housing entails misrepresentations by the applicant for the purpose of purchasing a property for a primary residence.
This scheme usually involves a single loan. Although applicants may embellish income and conceal debt, their intent is to repay the loan.
Fraud for profit, however, often involves multiple loans and elaborate schemes perpetrated to gain illicit proceeds from property sales.
Gross misrepresentations concerning appraisals and loan documents are common in fraud for profit schemes, and participants are frequently paid for their participation.
Although there is no centralized reporting mechanism for mortgage fraud complaints or investigations, numerous regulatory, industry, and law enforcement agencies collaborate to share information used to assess the current fraud climate.
Source: FBI Financial Crimes Section, Financial Institution Fraud Unit, Mortgage Fraud: A Guide for Investigators 2003