* His lender is highly unlikely to find out unless someone specifically tips him off
* If his lender does find out and decide to punish the guy, they can demand that he returns his loan immediately. It’s called “calling the loan”. If he does not have enough cash to pay off the mortgage, the lender can go after his home, other assets, and possibly force him into bankruptcy.
* Worst case scenario, they can report him to the FBI and your friend could end up in jail. I think it’s unlikely to happen and he could defend himself by blaming the mortgage broker, but there is this possibility.
