Lying on a loan application may seem harmless, but even if a lender does not verify every piece of information, it is still considered fraud. In fact, it is a crime under both federal and Texas laws to provide false statements to a financial institution.You may also contact the SAO Fraud Hotline at 1-800-TX-AUDIT (1-800-892-8348). The SAO will review all reports submitted. The schemes typically involve one or more of the following: fraudulent appraisals, doctored loan documentation, or inflated buyer income. Inscribe uses rulesbased fraud detection capabilities and machine learning to generate a full analysis of the legitimacy of an application document.