Mortgage fraud is a type of financial crime that occurs when someone intentionally misrepresents information to secure a mortgage loan. This can involve falsifying income, inflating property values, or using fake documents to deceive lenders. The goal is often to obtain a loan that the borrower would not qualify for under normal circumstances. There are various forms of mortgage fraud, including straw buyer schemes, where someone buys a property on behalf of another person who cannot qualify for a loan. This illegal activity can lead to significant financial losses for lenders and can contribute to broader economic issues, such as housing market instability.