And these banks want us to bail them out...
The politicians want us to bail the banks out. And the bailout will of necessity include the funds expended buying politicians.
So basically the Real Estate Agent and the Bank colluded to commit fraud, the folks who were involved should be looked at for Bank Fraud and Wire Fraud.
I think there should be some serious criminal investigations involved in some of these mortgage defaults, especially ones that it is obvious the borrower had no means of repayment, that is merely a strawman purchase.
The woman was a knowing part of the fraud. She "loaned" her credit as a flower shop owner to the brother of a friend who was in the real estate business. The friend was actively managing these income properties. Nobody admits to completing the mortgage application which the bank accepted.
Taxpayers and/or stockholders, which is usually the same people ,will pick up the tab.