The government is involved in many aspects of the home buying process. It regulates interest rates and how these contracts are serviced and provides financial backing in many cases. Because of this role, it is natural that the government would be interested in regulating mortgage fraud.
The reality is that resources for investigating and rooting out scams are few and far between. To address these issues, a program was created to reward whistleblowers who provide information about wrongdoing.
With the legal help of a dedicated whistleblower attorney, it may be possible to recover compensation for reporting fraudulent activity. A Lexington mortgage fraud whistleblower lawyer could assist you with the legal process.
Different schemes are used to defraud the government during mortgage-related transactions. Some tactics are straightforward, while others are as complex as they are sophisticated. Examples of mortgage fraud that a Lexington whistleblower attorney could assist with include the following:
The value of a home is essential for various reasons. It is used when an individual or family intends to refinance or get a second loan. The outcome of an appraisal will also impact whether or not an applicant receives a large enough loan to cover the purchase price. For this reason, it is not uncommon for buyers or bank employees to alter these numbers to qualify when, in reality, they would not be eligible.
A common scheme that individuals will use involves lying about the amount of income they have in order to secure a loan they would otherwise not qualify for. Banks generally require proof of income, including the amount a person makes annually, to determine the size of the loan they are qualified to receive. Falsifying this information allows them to get more money from the bank than they are actually entitled to.
Particular loans are only available when a person or a family uses the house in question as their primary residence. Lying about this fact to obtain a loan for a rental property or second home is against the law but a form of fraud that people will attempt to use.
Any time mortgage fraud results in a financial loss to the federal government, a whistleblower has the opportunity to secure a monetary award by providing tips that lead to prosecution. This information must result in a conviction or administrative action that leads to the return of fraudulently acquired funds.
In this scenario, a citizen has the right to file a qui tam lawsuit. If successful, they can keep a percentage of any funds recovered from the offender. Usually, this is between 15 and 30 percent of what is recouped.
Some parties are barred from pursuing these claims, including law enforcement officers and the subject of the criminal investigation. A mortgage fraud whistleblower lawyer in Lexington could answer questions on eligibility and whether someone would be able to obtain compensation.
When you have inside knowledge regarding fraudulent activity, now is the time to act. If your information is helpful to the authorities, you might be entitled to compensation through the False Claims Act.
Navigating this legal process alone is rarely straightforward. Schedule a consultation with our team today to speak with a Lexington mortgage fraud whistleblower lawyer to discuss your options.