Good reminder of the fraud Daniel. However, from a buyers perspective,especially an unsophisticated person’s of which there were many, I could see looking at the “fudging” as being desired and encouraged by every single real estate professional they were involved with, all parties up the lending tree and regulators too.

Playing devils advocate,it wasn’t lying, it was adjusting for red tape and inefficiency. Almost everyone was in cahoots. With that knowlege and the security gained from the promises that everything was going to be fine, “houses always go up”,”the thriving economy and inflation is going to drive your earnings through the roof” and the barking about “ownership society”, one could easily glance over the fact that they were exaggerating and only hold themselves responsible, when the gig is up, to realities imposed by the deal, self interest intact. In fact it is because everyone was in cahoots that this is what is happening and will happen. I don’t see how you hold only the borrower liable for what some people call a top down ponzi scheme.