100% every downturn banks and regulator look for a few scapegoats to make an example, unfortunately its more prevalent than we'd like to believe and as per title of this thread there need to be more awareness of what constitutes fraud and what the potential consequences are.
https://www.wsj.com/finance/banking/nycb-meridian-trouble-commercial-real-estate-86ae7a34“Fannie Mae, Freddie Mac and federal housing regulators are launching wider looks into the opaque market, according to people familiar with the probes. Federal prosecutors are investigating landlords and suspected mortgage fraud, according to people familiar with those efforts.”
“The government-backed lenders are now starting to sift through the financials of numerous borrowers and brokers, looking to weed out fabricated numbers, according to people familiar with the matter.”
At least going forward every GP and every broker better be dotting their “i”’s and crossing their “T”’s.
