Finance
What is 'mortgage fraud' and what are the consequences under Delaware and federal law?
AMaking an error on a mortgage application; consequences are limited to loan denial
BIntentional misrepresentation on a mortgage application — inflating income, fabricating employment, or misrepresenting property value — which is a federal crime subject to fines and imprisonment✓ Correct
CPaying too much interest on a mortgage; lenders must refund excess amounts
DTaking out a second mortgage without the first lender's knowledge; only a civil violation
Explanation
Mortgage fraud involves intentional material misrepresentation on a mortgage application — inflating income, using straw buyers, misstating property use, or colluding on appraisals. It is a federal crime (18 U.
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