Over the two-plus years I’ve been publicly rambling about the San Diego housing market, I’ve spilled very little ink on the topic of stated income mortgages–the so-called “liar loans” that require no proof of borrower income.
It’s not that I find this particular spawn of the housing bubble uninteresting. Far from it. But the fact is that I try to concentrate my efforts in the realm of the measurable and verifiable, whereas most information about stated income loan abuse is of the more anecdotal variety. There ever plenty of anecdotes, to be sure–I think we’ve probably all heard a version of the story wherein the landscaper or Starbucks barista is mysteriously pulling down six figures. But there has really been no way to measure how serious the problem really is.
It seems now that some more reliable information is beginning to surface.
read more at voiceofsandiego.org
I’m sorry for using the
I’m sorry for using the words “Warren Buffett” and “naked” in the same sentence, but the man does have a point.
Badum-bum! Tssss…
Okay, that made me laugh.
The MBARL president posted
The MBARL president posted here a few months ago, and I started a thread also. Here they are:
Lender Study Calls Stated Income Liar Loans
MBARL president warns of fraud in stated income loans
I’m surprised there isn’t more information available about lending standards. Perhaps because there aren’t any (hahahahahaha)
I am shocked that people are
I am shocked that people are lying on mortgage applications. What next…politicians fudging the facts?
The “whiff” indicator of
The “whiff” indicator of problems with various loans is showing itself in tangible ways such as H&R Block’s announcement of setting aside $102.1 million as a result of mortgage-loan delinquencies – a figure that apparently includes $46.1 million in loans sold by its Option One Mortgage unit during the quarter ended July 31 and $56 million in loans sold in earlier quarters.
NetBank added $13.2 million to its reserves during the quarter and Fremont General was forced to repurchase $238.4 million of loans during the second quarter, up from $67.7 million a year earlier.
What will the net result be? Lenders will begin tightening various loan programs and features that are believed to lead to the repurchases – leading to a constriction in available funds for more highly leveraged or lower quality loans. Another influence on the real estate market that may serve to weaken it.
As Winston Churchill would
As Winston Churchill would put, it, we’re in the midst of a ‘gathering storm.’
Denver Post article on
Denver Post article on Profits Oiling the Wheels of Loan Fraud:
http://www.denverpost.com/business/ci_4234236
Larry, that is a great
Larry, that is a great article. Next topic: don’t be afraid to make a link. Give it a try. is how to make a link. Read Rich’s post on the front page, which he wrote last week, explaining how to make a link. Even I figured it out just a few months ago. It took me 3 minutes to get it.
http://www.denverpost.com/bus
http://www.denverpost.com/business/ci_4234236
http://www.denverpost.com/business/ci_4234236
there, I think I got it.
yeah! You did it! If you
yeah! You did it! If you write the name of your link in the last section, i.e. Denver post article, that is what will show up instead of the URL.
Does anyone know how to make the clickable link open in a new window?
Does anyone know how to create a clickable link in the rich-text editor?
Are these people lying on
Are these people lying on their loan applications or lying on their IRS Tax returns (e.g. cash business tax dodges) ?