This guide offers insights and instructions for those considering blowing the whistle on housing and mortgage fraud. Which works out to 36962 a month.Using customized or altered bank statements, such as those from proofofstatement. Com, to apply for a loan is both unethical and illegal. Overview. Mortgage fraud for title occurs when someone uses your stolen identity, fake documents and identification to change the title on your home. Before you sign a mortgage application or any other loan documents, carefully review them to make sure they are complete and accurate. Providing accurate information on your mortgage application and using a licensed mortgage agent or broker can help you avoid being involved in mortgage fraud. Borrowers who misrepresent information and straw buyers who allow properties to be purchased in their name are committing mortgage fraud.