Good point about the flexible valuation of the house. But let's not forget that it's mostly NOT the lowly homeowner who's engaging in fraud, but the banksters, the C-suite execs, and the board members.
Essentially, they engage in fraud, asset stripping, and other devious schemes. With the expected results.
I was just using an easy example everyone should be able to understand. I agree the problem is industry wide.
Yes, I understand why you used that example. I just wanted to add my 2-cents worth. Cheers!