There's one phrase that seems to be a magic "oh it's ok then" for any fraud committed by the lovely people in the financial industry. It's "the borrower was behind a couple of payments." First, you shouldn't lose your house simply for getting behind a couple of payments. Foreclosure is a big expensive deal for all involved. If the incentives are such that it's worthwhile to foreclose on people who just missed a couple of payments then the incentives are completely messed up. Secondly, and I can't believe I even have to write this, no matter how many payments a borrower is behind, it isn't actually a license to commit fraud.
