Finance
In NJ, 'mortgage fraud' includes misrepresentation on a loan application such as inflating income. NJ treats mortgage fraud as:
AA minor civil infraction
BA criminal offense under state law and federal bank fraud statutes, potentially resulting in imprisonment and fines✓ Correct
COnly a civil RESPA violation
DOnly a licensing matter handled by the NJREC
Explanation
Mortgage fraud—including misrepresentation of income, assets, employment, or occupancy on a loan application—is a serious criminal offense under both NJ and federal law (18 U.S.C. 1344), with penalties including imprisonment.
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