Smalltownbanker

Prosecutors Going after Fraudulent Mortgage Borrowers

The lender who encouraged fraud is also a criminal and should go to jail? If I encourage you to do something illegal and you do it, forgiving the actual offender is idiotic. Each party has personal responsibility and should stand to the charges on their own. The ignorance of the law defense doesn't even work in traffic court.

By the way, credit reporting systems do not have income data and income and occupancy were the primary items lied about on applications. A "stated income" loan originated by the guidelines established by the lenders did not permit the loan officer to verify the information. If you verified the income, according to the program guidelines, the loan was not eligible for stated income processing. These rules were almost completely ignored but they were still the rules.


On Nov 13 04:54 AM The hand wrote:

> with todays credit verification systems, i personally fail to understand
> why the lending agencies even ask for more than a ss number. when
> the lender has this kind of power, i do not see legally how you can
> hold the borrower accountable.
>
> the lenders did not do due diligence in entering into the loan agreements.
> and that, my friends begs the bigger question - is it not obvious
> that the lenders must have encouraged the borrowers to lie?
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