About identity theft - all CONgress has to do to eliminate this problem is to make the lender responsible for issuing a fraudulent loan - not the person defrauded.
I personally know of a case where a person with "power of attorney" for an elderly person's finances went into a bank and had the woman sign for a mortgage - the proceeds of which the person with power of attorney promptly stole and spent. The woman's estate was subjected to legal action by the issuing bank - for a loan made against a property in trust, without even checking to see if there was a clear title for the property in question. The heirs had to pay off the bank - and their lawyers.
With a law as I suggest in place, the bank would have had no recourse except to prosecute the person with the power of attorney who was guilty of not only fraud, but malfeasance.