Definition: A material intentional misstatement, misrepresentation, or omission used in the mortgage-lending process to deceive a lender or another participant.
Example
An applicant knowingly submits false income documents to obtain a loan.
Keep the distinction clear
An innocent mistake is not automatically fraud. Licensees must not participate in false loan information, inflated documents, or concealed transaction facts.
Related terms
Fraud · Mortgage Loan Originator (MLO) · Misrepresentation
Keep studying
References: Florida Statutes 817.545
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