What exactly is mortgage fraud? Housing counselor Matt Gregory, who works for national nonprofit Guidewell Financial Solutions says, "Mortgage fraud occurs anytime you make a false statement or omit information about your income, assets, or debt or misrepresent who you are." According to the FBI, it also may involve willfully overvaluing land or property on a loan application in the hopes of influencing how much financial institutions are willing to lend. September 2014 Housing e-Bulletin.