http://www.biggerpockets.com/blogs/90/blog_posts/1317#comments Comments from 'Lying To Get a Mortgage Could Put You In Jail!' in Rob K. Blake - The Insider at BiggerPockets.com http://www.biggerpockets.com/blogs/90/blog_posts/1317#c_1042 http://www.biggerpockets.com/blogs/90/blog_posts/1317#c_1042 No, but even on the stated income loan ( what are know as "liar loans") the borrower was contractually bound to tell the truth about his income. Of course, knowing the lender was not going to verify the income opened the door to lie. But just because the door is open...doesn't absolve the borrower from the legal obligation to tell the truth. If lenders wanted to sue, they could. If prosecutors wanted to prosecute they could. Nobody, as you point out, seems to want to avail themselves of this option... Thanks for stopping by... http://www.biggerpockets.com/blogs/90/blog_posts/1317#c_1041 http://www.biggerpockets.com/blogs/90/blog_posts/1317#c_1041 Are the mortgage companies spending their time and money going after liar loan borrowers? I would suspect our prison system would be getting even more crowded if so