What is the most common type of mortgage fraud?

The most common type of mortgage fraud is indeed application fraud, which occurs when a borrower submits false or misleading information on a mortgage application. This can involve inflating income, misrepresenting employment status, or omitting debts to qualify for a mortgage that they might not otherwise be able to secure. Application fraud is prevalent because it often involves individuals attempting to obtain loans under false pretenses, which can be attractive to those looking to purchase property without fully disclosing their financial situation.

Fraud for property, while also significant, typically focuses on schemes where individuals obtain a property through deceitful means, such as manipulating property values or falsifying ownership documents. This form of fraud is not as common as application fraud because it usually involves more complex operations and higher stakes.

Fraud for profit involves orchestrated schemes usually aimed at creating profit through the exploitation of the mortgage process, involving appraisers, lenders, or other industry professionals. While serious, it is less common among individual borrowers compared to basic application fraud.

White fraud is not a standard classification in mortgage fraud terminology and does not represent a specific, recognized category of fraud in real estate and mortgage practices.