06-22-2008, 02:51 PM
KathyH,
The main reason they are called "liar loans" is that people lied to get into the big home than they had means for and the bank/broker failed to examine and verify the data sbmitted. I have used a NINA, but I placed a large down payment 60% and was ready to submit more data if required. Actually there are ways to get loans for those who are asset and cash heavy.
Its the idea that people get ARMs under the idea that they can refinance later, and pull money out. People who did Nina/Ninja/OptARM and other exotic have really screwed over their community not only themselves. They bid up prices, which raises everyones RE taxes; then when they default they lower everyones property values.
People need to go back to 3yrs W2s, 2 yrs bank records, 3x income when getting a loan.
And lying on a mortgage doc is a federal offense, usually falling under fraud provisions. It would be crazy if the Feds re-examined all those loans going into forclosure and prosecuted those who applied couldnt verify income, or brokers who failed to verify the info before securitizing it and the mortgage went belly up. Heck lets bring back some debtors prisons for applicants and loan brokers so they can pay back their debts. Where is responsibility placed?
The main reason they are called "liar loans" is that people lied to get into the big home than they had means for and the bank/broker failed to examine and verify the data sbmitted. I have used a NINA, but I placed a large down payment 60% and was ready to submit more data if required. Actually there are ways to get loans for those who are asset and cash heavy.
Its the idea that people get ARMs under the idea that they can refinance later, and pull money out. People who did Nina/Ninja/OptARM and other exotic have really screwed over their community not only themselves. They bid up prices, which raises everyones RE taxes; then when they default they lower everyones property values.
People need to go back to 3yrs W2s, 2 yrs bank records, 3x income when getting a loan.
And lying on a mortgage doc is a federal offense, usually falling under fraud provisions. It would be crazy if the Feds re-examined all those loans going into forclosure and prosecuted those who applied couldnt verify income, or brokers who failed to verify the info before securitizing it and the mortgage went belly up. Heck lets bring back some debtors prisons for applicants and loan brokers so they can pay back their debts. Where is responsibility placed?