How is “residential mortgage fraud” defined in Minnesota law?

The definition of “residential mortgage fraud” in Minnesota law focuses on intentional actions that involve misrepresentation or the withholding of significant information during the mortgage lending process. Specifically, it is characterized by a knowing material misstatement or omission intended to deceive a lender, borrower, or any other party involved in the mortgage transaction. This aspect of the definition emphasizes the intent behind the misrepresentation, indicating that the person committing the fraud is aware of their actions and the potential consequences.

This definition is crucial because it encompasses activities that undermine the integrity of the mortgage lending process, potentially leading to significant financial losses for lenders and other stakeholders. It distinguishes between unintentional errors and deliberate fraud, which is why knowing the intent and materiality is essential in legal contexts. The other options, while related to aspects of mortgage transactions, do not encapsulate the essence of what constitutes residential mortgage fraud as defined in the law.