Mortgage fraud occurs when someone, whether an individual, institution, or entity, intentionally misrepresents or omits information during the mortgage application process. This misleading information influences the lender’s decision to fund, purchase, or insure the loan. Both borrowers and industry professionals can engage in this type of fraud. 

Mortgage fraud has serious consequences for both individuals and the broader economy. In the wake of the 2008 financial crisis, the government has increased efforts to combat this crime, often relying on whistleblowers to provide crucial information.