The federal government is heavily invested in the mortgage industry. The government provides financial backing for a large number of loans, and in return they are aggressive in rooting out and investigating anyone perpetrating mortgage fraud.

If you have information that could expose wrongdoing related to mortgage fraud, you might be entitled to a financial award. An experienced whistleblower attorney could advise you if your information provides a strong claim for mortgage fraud. You could benefit from speaking about your legal options with a Charleston mortgage fraud whistleblower lawyer.

Types of Mortgage Fraud

At its core, mortgage fraud involves submitting false information in order to secure a loan. Fraud is often perpetrated by homeowners, but lenders and appraisers could also be involved. It is not uncommon for multiple parties to work together in an effort to commit mortgage fraud.

There are different forms of mortgage fraud that lawyers commonly see. In each of these cases, a Charleston mortgage fraud whistleblower attorney could advise on whether a Qui Tam action is appropriate in any of these situations.

Income Fraud

One of the most common types of mortgage fraud is known as income fraud. Mortgage lenders require proof of income before they will agree to loan a homeowner money. If a loan officer or buyer fudges those numbers, they could be guilty of fraud.

Appraisal Fraud

The value of the home is also an important factor when it comes to getting a loan. When an appraiser understates of overstates the value of a home, it could be possible to secure more money than is necessary to make the purchase.

Occupancy Fraud

There are certain mortgage rates that are reserved for individuals purchasing a home as their primary residence. One type of fraud is seeking a loan for investment property under the guise of buying a residence.

Understanding the False Claims Act

One of the primary tools used by the federal government to combat mortgage fraud is the False Claims Act. The False Claims Act is not a type of criminal statute. Instead, it empowers citizens to pursue legal action that could lead to a financial reward if the allegation of mortgage fraud is substantiated. A Charleston mortgage fraud whistleblower attorney could be invaluable during this process.

Whether or not a reward is a possibility will depend on if the information was given voluntarily. Information is given voluntarily when it has not yet been compelled or requested by the government. In other words, a person who is only speaking because they are complying with a subpoena is not eligible for compensation through the False Claims Act.

A successful False Claims Act claim could provide a whistleblower with a financial reward equal to a percentage of the amount that is fraudulently recovered. What is more, it is also possible to pursue these claims without fear of reprisal.

Protections Against Retaliation

The law is designed to protect whistleblowers. Many potential whistleblowers are employees of the organizations involved in the fraud and those individuals might fear retaliation if they speak out. The law offers protection in these cases by barring retaliation and allowing the whistleblower to pursue civil action against their employer if any kind of retaliation does occur.

Contact a Charleston Mortgage Fraud Whistleblower Attorney Today

If you believe that you have information regarding an act of mortgage fraud, you might be entitled to recover a monetary award. By pursuing legal action under the False Claims Act, you could recover that award while being protected from retaliation from your employer. You do not have to file a Qui Tam action on your own. Contact a Charleston mortgage fraud whistleblower lawyer today.

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