It's simply not possible to sell subprime loans as AAA investments without a liberal sprinkling of fraud.
https://www.huffingtonpost.com/william-k-black/the-two-docum...
Some other reading on the subject:
>the Financial Crisis Inquiry Commission, in its final report, uses variants of the word “fraud” no fewer than 157 times in describing what led to the crisis, concluding that there was a “systemic breakdown,” not just in accountability, but also in ethical behavior.
>As the commission found, the signs of fraud were everywhere to be seen, with the number of reports of suspected mortgage fraud rising twenty-fold between 1996 and 2005 and then doubling again in the next four years.
>As early as 2004, FBI Assistant Director Chris Swecker was publicly warning of the “pervasive problem” of mortgage fraud, driven by the voracious demand for mortgage-backed securities.
http://www.nybooks.com/articles/2014/01/09/financial-crisis-...