As we learned from the 2008 Financial Crisis, rampant mortgage fraud can be catastrophic to the global economy. Banks routinely gave loans to people who clearly could not afford to repay them, and then quickly grouped the bad loans into bonds, which they sold to unsuspecting investors as AAA rated investments. In many cases, the banks who securitized the loans knew that the borrowers had lied about their income, assets, and ability to repay.
Mortgage fraud is often actionable as a whistleblower claim. In general, most fraud in connection with mortgage origination is actionable under FIRREA as fraud that affects federally insured financial institutions. Further, loans that are guaranteed by the United States government, such as the Federal Housing Administration or the U.S. Department of Veterans Affairs have strict underwriting guidelines. When those guidelines are violated or the lender issues the loan knowing that the borrower has made false statements, the lender is likely liable under the False Claims Act. Moreover, when bad loans are knowingly packaged into securities and pawned off on investors, the fraud is actionable under the SEC Whistleblower Program and FIRREA.
If you have evidence of mortgage fraud you should speak to a qualified whistleblower attorney.