During the mortgage crisis, lenders often made no effort to verify the stated income of prospective borrowers

During the mortgage crisis, lenders often made no effort to verify the stated income of prospective borrowers. On the flip side, and not necessarily exclusive to the mortgage crisis, borrowers have been known to falsify mortgage applications. Under what circumstances, if any, should mortgage lenders who abandon traditional practices – leading to foreclosures and toxic assets – be held criminally liable for their conduct? Should borrowers who falsify their income to obtain mortgages be prosecuted? What if a borrower pays a loan for a few years, loses his job and defaults?