Borrower’s punishment stands in contrast to mortgage executives

Charlie Engle, encouraged by his broker, lied about his income on two mortgage applications for stated-income loans (also called ‘liar loans’ because no one was required to verify the numbers provided by applcants). An IRS agent started looking at Engle’s finances after he saw him in a documentary training to run marathons. The agent wondered how Engle could afford to train, and thus began an investigation that ended with Engle in prison, not for tax fraud, but for lying on his mortgage applications (it took a female undercover agent to wrestle a supposed confession out of Engle). “His punishment stands in stark contrast to that of the Countrywide chief executive Angelo Mozilo, who personally pulled in millions of dollars from his company’s embrace of low-documentation loans like Engle’s,” says the Huffington Post.

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