30 Years and $1Million Fine

To tell a lie on a mortgage application is to be subject to 30 years imprisonment and $1million fine.

Why such a stiff penalty?

. Well of course, if public policy was to subsidize and encourage home ownership, someday someone may cheat, and abuse the system.

Today, probably some 21 million people in USA have lied on mortgage applications.

We had laws on the books, severe ones, to curb abuse. They were never enforced.

We had the enforcers on the payroll, but they "enforced" other things.

When the FED printed funny money and lowered the interest rate, the government signaled a desire for a real estate bubble, necessarily achieved by people lying on loan applications. The carry trade, the banks and the brokers did their part.

Laws were broken, nobody did anything wrong. All very confusing.
.

Bookmark this post --- Email this post