How about if you borrowed the money to buy the Golden Gate Bridge from a lender who didn't sell the bridge to you, and didn't care if you bought it or something else? When you find out the Bridge is not yours, is it your right to stop paying the lender?
People need to stop equating the banks with the person who sold them inflated homes in a bubble market.
fraud in the factum.
A fraud in the inception makes everyone a victim. Doubly so for a bank stupid enough to not follow proper procedure.
Your example also makes no sense given that banks always ask for what purpose is this money.
Greed is good.
pigs are slaughtered.