she asked my hubby for the loan to be in his name, my hubby said i would have to talk to needfixing first. when he told me he said i don't want to do this, i said she's your sister and family helps out family.

Your husband's instincts were correct and he knew his family pretty well to say that.
In many situations; loaning money to friends and family is a "no no". Helping is sometimes a good thing; but not always. Identity theft, means your sil is a large piece of work. Lesson learned!