Mortgage fraud is the deliberate misrepresentation of information knowing a lender will believe it to be true and rely upon it in approving the loan. Misrepresentations frequently relate to the following: Income Employment Work history Income Employment Work history In some instances, the person applying for the mortgage may be acting on behalf of another party without revealing this information to the lender. So-called “straw buyers” are used to shield the identity of another person who would be unable to qualify for the financing. Some mortgage fraud schemes go to great lengths, including the creation of fake title insurance and property insurance certificates to trick the lender. straw buyers Allowing yourself to be used to obtain a loan for another person or misrepresenting information you give the bank could result in criminal charges being filed against you. Even if you are fortunate and avoid criminal charges, you could be sued by the lender for any damages they incur as a result of the fraud.