For most people, buying a new home will be the most significant financial transaction they make. To afford a home, individuals typically need a loan secured by the property they intend to buy. The unfortunate reality is that the mortgage application process is heavy with fraud.
By stepping forward with information about fraudulent mortgage activity, you play a crucial role in uncovering and stopping it. The federal government acknowledges these efforts by providing financial rewards for your cooperation.
A dedicated whistleblower attorney could answer your questions about how this process works. Not everyone is eligible, and your information must produce results. Let a Columbia mortgage fraud whistleblower lawyer advise you of your options.
The Types of Mortgage Fraud
Not all acts of fraud in the mortgage industry look the same. Numerous schemes are used to defraud the government during transactions that receive federal funds.
Some of these tactics are unsophisticated, while others are complex. A Columbia mortgage fraud whistleblower attorney could help someone with information regarding dishonest appraisals, false income, and fraudulent occupancy.
Dishonest Appraisals
A vital part of buying or selling a home is determining its worth. One of the most common fraudulent practices involves altering the values on the appraisals to get more money than the home is actually worth. This is common during sales and when applying for second loans or refinancing.
False Income
Before prospective homebuyers can get a loan, they must show they can repay it. If their income is too low, they will not qualify. This often leads applicants to falsify their income in order to secure a loan for a property they cannot afford.
Fraudulent Occupancy
Certain types of loans are only an option when a family uses a property as their primary residence. Lying about using a rental property or vacation home as a residence is a form of fraud.
Understanding Qui Tam Lawsuits
When evidence of fraud in the mortgage industry results in a financial loss to the government, a whistleblower with information about that wrongdoing could have grounds for a qui tam lawsuit. This type of legal action seeks a portion of any funds recovered through prosecution or administrative actions against those who committed fraud.
There are limitations on when this compensation is available. First and foremost, any evidence provided must lead the government to a successful prosecution or administrative action.
In addition, it must be new information, meaning providing a tip the authorities have already received will not lead to a successful claim. Finally, certain parties, like law enforcement officers and those involved in the scheme, are barred from recovering an award.
It may not be immediately apparent when this type of lawsuit is appropriate. Thankfully, a mortgage fraud whistleblower lawyer in Columbia could answer any questions about what to expect.
Call a Mortgage Fraud Whistleblower Attorney in Columbia Today
When you believe you have inside knowledge about mortgage-related fraud, now is the time to act. Your decision to serve as a whistleblower can significantly stop costly fraud and make you eligible for a monetary award based on your cooperation.
Reach out to a Columbia mortgage fraud whistleblower lawyer today to learn more and take the first step toward stopping mortgage fraud. Our hardworking and well-versed legal team is here to support your case. Schedule your initial consultation today.
