I sold some Countrywide loans when I was a broker, they have pretty tight underwriting guidelines. It would take the borrower and the LO to admit they falsified the 1003 to get any type of conviction.

Sheesh even when the State of Ohio comes and audits a broker office, they spend maybe 5 hours and review maybe a dozen files. The task is too large to audit every single Countrywide loan. WAIT! There is the answer to our job crisis! Train everyone to do mortgage audits on CW loans! There are hundreds of thousands of those things. =)