Prime Capital Group

OUR MORTGAGE FRAUD POLICY

Protecting our investors, borrowers, and partners through uncompromising integrity

ZERO MORTGAGE FRAUD

Prime Capital Group, Inc. maintains a strict zero-tolerance policy toward mortgage fraud in any form. We are committed to ensuring the integrity of every transaction we fund and every relationship we maintain. Our commitment to fraud prevention protects our investors, our borrowers, and the broader real estate and lending community.

We employ advanced software tools and rigorous manual review processes to detect and prevent mortgage fraud at every stage of the loan origination and funding process. Every application, document, and transaction is carefully scrutinized by our experienced underwriting team and verified through multiple independent sources.

Advanced Detection Software

We use industry-leading fraud detection software to analyze every loan application, verify document authenticity, and cross-reference borrower information against multiple databases.

Rigorous Manual Review

Our experienced underwriters personally review every file, verifying income, employment, property values, and all supporting documentation through independent channels.

Mortgage Fraud Is a Federal Crime

Under federal law (18 U.S.C. § 1014), knowingly making a false statement or report for the purpose of influencing the action of a financial institution on any application, advance, commitment, or loan is punishable by a fine of up to $1,000,000 and/or imprisonment of up to 30 years. Mortgage fraud is investigated by the FBI, HUD Office of Inspector General, and other federal agencies.

What Is Mortgage Fraud?

Mortgage fraud is a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a mortgage loan. It includes any scheme to defraud a lender or other party through false or misleading information in connection with a real estate transaction.

Mortgage fraud can be committed by borrowers, brokers, realtors, appraisers, closing agents, title officers, or any other party involved in the loan transaction. It can occur at any stage of the process, from application through closing and post-closing.

Common Examples of Mortgage Fraud

The following are examples of activities that constitute mortgage fraud. This list is not exhaustive.

Submitting false or misleading information on a loan application

Providing fake or altered pay stubs, tax returns, or bank statements

Using a straw buyer to purchase property on behalf of someone else

Inflating the appraised value of a property

Failing to disclose debts, liens, or other liabilities

Identity theft or using another person's identity to obtain a loan

Occupancy fraud — claiming a property will be owner-occupied when it will be rented or vacant

Equity stripping schemes targeting vulnerable homeowners

Cash-back schemes at closing that are not disclosed to the lender

Falsifying employment history or income sources

Air loans — loans on properties that do not exist or that the borrower does not own

Submitting forged or fraudulent documents of any kind

Consequences for Borrowers

Borrowers who commit or participate in mortgage fraud face severe consequences, including but not limited to:

Federal criminal prosecution with penalties of up to 30 years in prison

Fines of up to $1,000,000 per offense

Civil liability and restitution to victims

Immediate loan acceleration and foreclosure

Permanent damage to credit history

Difficulty obtaining future financing of any kind

Loss of the property

A permanent federal criminal record

Consequences for Brokers & Realtors

Mortgage brokers, real estate agents, and other industry professionals who commit, facilitate, or knowingly participate in mortgage fraud face additional consequences beyond criminal prosecution:

Federal criminal prosecution with penalties of up to 30 years in prison

Fines of up to $1,000,000 per offense

Permanent revocation of real estate and/or mortgage license

Civil lawsuits from lenders, investors, and borrowers

Restitution orders to all harmed parties

Disgorgement of all commissions and fees earned on fraudulent transactions

Debarment from the real estate and lending industry

A permanent federal criminal record

Prime Capital Group, Inc. will report any suspected mortgage fraud to the appropriate federal, state, and local authorities. We will cooperate fully with all law enforcement investigations and will pursue all available civil and criminal remedies against any party that engages in fraudulent activity.

If you suspect mortgage fraud or have been asked to participate in a fraudulent transaction, we encourage you to report it to the FBI at tips.fbi.gov or call 1-800-CALL-FBI.