Was it fraud or was it an investment gone bad which they were able to walk away from with no liability? Fraud assumes they knew the values would drop and they would default. Why would anyone do that. No, they assumed the values would increase and they would make money in the process. It wasn’t fraud, it was GREED! Let’s face it. If the lenders were dumb enough to make loans to people without regard for equity(no down payment) and ability to pay ( no income verification) then maybe they got what they deserved.