Mortgage fraud involves intentionally misrepresenting or omitting information during a mortgage application to gain financial advantage. Common types include Income Fraud (inflating income to qualify for better terms), Occupancy Fraud (falsely claiming intent to live in the property), Appraisal Fraud (inflating property value), Identity Theft (applying under another’s identity), and Straw Buyer Schemes (using a stand-in borrower). Mortgage fraud can cause significant financial loss and destabilize the housing market. Regulatory authorities actively detect and penalize such fraud, which carries serious legal consequences.