When I read reports like these, I feel sorry for America. A country founded on the rule of law. A once-proud country of order and fairness.
This sends a terrible message, that crimes will not be prosecuted, that laws will be ignored, that crime pays, and that playing by the rules is the wrong thing to do.
George Bush, the Justice Department, the FBI, the IRS and the 50 state attorneys general should be ashamed. This is un-American, and those involved in allowing this illegal behavior to go unpunished should be investigated by Congress, and tried for treason. But that would involve Conress not being corrupt and un-American themselves.
Hat-tip to ml-implode for the link
FBI Will Not Go After Borrowers Who Lied on Mortgage Applications
Borrowers who defrauded lenders by lying on their mortgage application could be thrown in prison for up to 30 years and forced to pay a $1 million fine under the current federal law. But the FBI says there is no intention to pursue borrowers at this time.
Almost 60 percent of stated-loan applicants inflated their incomes by at least 50 percent, according to the Mortgage Asset Research Institute. The worst part is that everyone knew the income was being inflated. The industry even had a name for these kinds of loans--'liar's loans.'
Although lying on a mortgage application is a federal crime, borrowers who committed mortgage fraud are low on the FBI's list of priorities. Joseph Schadler, an FBI spokesman, said investigators will be focusing on organized property flipping rings and bogus foreclosure rescue schemes instead of lying buyers.