Nothing wrong with stated income/no income as long as LTV is kept to a sane quantity. No more than 50-60% of value with assets to cover a year or two of payments in the bank.
It actually has a place with people whose incomes vary greatly from year to year, but the way it was done before 2007 was asinine.
Interestingly, the Texan law that you mention dated from the 1800s, pre-S&L crisis.
