We’re now seeing high-ranking government officials—from the Federal Reserve, Congress, and even the judiciary—charged with mortgage fraud. The fraud isn’t flashy, but it’s widespread: it’s called occupancy fraud.

Here’s how it works: loans for your primary residence (where you live at least six months a year) carry the most favorable rates and terms. They’re often backed by government entities like the VA or FHA, or underwritten by Fannie Mae and Freddie Mac. These programs are the very foundation of our housing market.

But loans for second homes or investment properties? Those carry higher risk and higher rates. When someone lies on their application and claims an investment property is a primary residence, they’re getting unfair terms at the expense of the system. It may seem like a “checkbox” crime, but make no mistake—it’s fraud.

And government officials, of all people, should know better.

The Justice Department seems to agree. They’re reviewing mortgage files, looking specifically for occupancy fraud among government employees. These aren’t billion-dollar scandals, but here’s why it matters: it might set a “broken windows” effect in motion.

Broken windows theory, first applied in law enforcement, suggests that cracking down on small crimes (like broken windows, fare evasion, or graffiti) sets an expectation of order that discourages bigger crimes.

Could the same idea apply to our leaders? If even minor fraud gets punished, it sets a precedent. It reinforces that elected officials and employees are expected to live by the same rules as everyone else.

For years, people have clamored for accountability in government. This may not be the “big fish” everyone wants to see brought down, but it could be the start of something important.

Broken windows isn’t about the glass—it’s about expectations. Accountability. Example-setting.

One of my frustrations with government has been the lack of consequences for misconduct—large or small. I’ll hold out hope that bigger cases of corruption are addressed in time. But in the meantime, seeing even smaller frauds treated seriously is good news.

Even better, this is a crime that cuts through politics. It’s simply about telling the truth on a government form. That’s something we all face in our daily lives, especially in real estate and lending.

If leaders can’t be trusted to check a box honestly, how can they be trusted to manage the responsibilities of office?

Serving in government is a privilege, not a right. Accountability at every level is essential for good governance and the longevity of a free society.

I, for one, will cheer this on—and hope that the effect spreads far and wide.