I'm not sure what you are asking. Are you asking if a Lender or Broker can sell a loan to their investor or bank knowing there is fraud involved? If that is what you are asking the answer is yes. But the banks and investors have in place a quality control department and pull every so many files to do a quality control audit to check for fraud. The problem is they do not do it on every single file.
I personally have seen fraud in a loan file that I was working on and immediately cancelled the loan. Whether the fraud is in the paystubs, W-2's, bank statements or any other items within the loan; the integrity of the loan has been compromised and I, as a loan officer in the State of Texas, will not risk my license, my job or my career for any one particular loan file. It is not worth it. Unfortunately, there are some loan officers out there who will compromise their integrity to get a deal closed. Those few give the rest of us a bad rap.
If you know there is loan fraud on a file, what you could do is contact the Department of Real Estate Licensing or the Savings &Loan Department for that state to report it and let them do their job to investigate the loan officer, company or particular loan file.
I hope this helps.
Di Anne Warlick