Final answer:
The statement that only lenders can be investigated or found guilty of mortgage fraud is incorrect as anyone involved in the mortgage process can potentially be implicated in mortgage fraud, including borrowers and third parties.
Step-by-step explanation:
The statement 'Only lenders can be investigated or found guilty of mortgage fraud' is the one that does not correctly describe mortgage fraud. In truth, anyone involved in the mortgage process can potentially be implicated in mortgage fraud, not just lenders. This can include borrowers, real estate agents, appraisers, and other third parties.
Mortgage fraud can indeed occur without the borrower's knowledge, particularly in cases like identity theft where someone's personal information is used without their consent. Intentional omission of relevant information can certainly be an act of mortgage fraud since it involves misrepresentation or concealment of material facts. On the other hand, mortgage fraud occurs when incorrect information is provided with the intent to influence the lender's decision.
During the 2008 financial crisis, the securitization of mortgage loans and the sale of these as bonds contributed to a disconnect between the lending process and the evaluation of borrowers' repayment abilities, paving the way for increased risk and fraud in the housing market.