Dear BBB,
My husband and I would like to refinance the mortgage on our house to take advantage of lower mortgage rates. The only problem is that our financial situation has changed dramatically since we originally secured our mortgage. Someone suggested that we just leave our financial information the same as it was on our old mortgage application to avoid the hassle with the bank. I’m concerned that this is considered fraud?
~ Morose Mortgagor
A: Morose Mortgagor,
Yes, you are RIGHT this would be considered mortgage fraud. Mortgage fraud is any scheme designed to obtain mortgage financing under false pretences, such as using fraudulent or stolen identification or falsifying income statements. People both knowing and unknowingly can become victims of mortgage fraud. In this case you would be knowingly participating in mortgage fraud, and criminal charges could be laid against you. Some law enforcement agencies and lenders in Canada believe that nearly 10-15 percent of all mortgage applications contain false information. It is really important that you carefully review all the information on your mortgage application to besure that everything on it is true and accurate. Never let anyone pressure you into putting false or misleading information in your application.