Can a person file a 1040 with mortgage interes if they do not own a home? And if accountant does this without taxpayers knowledge what are the conciquences. And would this be considered misrepresentation to a lender on a home mortgage loan?

You can not deduct mortgage interest if you do not have an ownership interest in the home. Reason is that in order to be deductible you must stand to lose the home if you default. That's why mortgages are deductible, but personal loans are not.

If your tax preparer messed up on your return you should take it up with him. You should file an amended return without this deduction, and you will owe some additional taxes, but I would hope that any professional tax preparer would pay the interest due since it was his mistake.

I don't see how your tax return issues can be construed as misrepresentation to a lender. Of course if a borrower misrepresents his ownership interest in a home then it is definitely an issue of fraud by the borrower, since the lender would believe that the house is collateral on the loan.