No such thing as liar’s loans ... it’s FRAUD clear and simple and should be fully prosecuted. Note that much of the paperwork was sent via hard copy, snail mail, via US Post Office. That adds the charge of mail fraud.
I agree. But, the other point is the bank should have verified income before disbursing the check. That was their obligation. As the article said, the banks hoped to pass the entire blame onto the borrower of its lack of due diligence.
In many cases it was, in fact, solicited fraud.