[quote=SK in CV]…In many cases (particularly in the instances you describe), those income figures were provided by someone other than the borrower.[/quote]
SK, those “income figures” had to be listed on the application somewhere. Then the applicants SIGNED the application, in essence, stating that they were declaring that the number represented on that document as their income was, in fact, true.
So, the “gardener and the maid” at all times KNEW what income they were using to obtain a (“80/20” or 100% LTV) mortgage on whatever kind of property they were attempting to buy at the time. On my block, this “real-life gardener and maid” (yes, for reals, Piggs) managed to pay $590K for a property which sold for about $267K just 2.5 yrs later as an REO.
Just because a (greedy, corrupt) “loan officer” filled in bogus income figures on a mtg application that the borrower signed and, in doing so, blatantly lied about, this doesn’t reduce the culpability of the borrower in the massive foreclosure mess we experienced from 2006 forward. In ALL of these cases, unqualified borrowers were attempting to purchase properties (and most were successful in doing so) which clearly were out of their league. These borrowers did so with their eyes wide open, IMO.
