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March 10, 2007 – Comments (2)

"Mortgages requiring little or no documentation became known colloquially as “liar loans.” An April 2006 report by the Mortgage Asset Research Institute, a consulting concern in Reston, Va., analyzed 100 loans in which the borrowers merely stated their incomes, and then looked at documents those borrowers had filed with the I.R.S. The resulting differences were significant: in 90 percent of loans, borrowers overstated their incomes 5 percent or more. But in almost 60 percent of cases, borrowers inflated their incomes by more than half."


Oh yeah, that sounds good.


Whole Times story is here

2 Comments – Post Your Own

#1) On March 10, 2007 at 10:59 PM, crfrank76 (53.58) wrote:

[Homer has to write his full name on an application form but he doesn't know what his middle initial stands for]
Homer: No. Homer Simpson does not lie twice on the same form. He never has and he never will.
Marge: You lied dozens of times on our mortgage application.
Homer: Yeah, but they were all part of a single ball of lies. The point is, I'm a grown man, and I deserve a middle name.

That was some article to read....

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#2) On March 11, 2007 at 6:44 PM, TMFBent (99.25) wrote:

There's another one in businessweek, this one trying to make the claim that the Fed's interest rate increases are a "regressive tax" on the less well-to-do.


One should always be suspicious when BW starts sticking up for the non-wealthy, IMO, and the article has good info, the it's thesis is 180 degrees off. The problem was never the Fed. The problem was that it was in everyone's interests to lie, pretend, exaggerate, and keep swapping paper. Now that the lies are starting to come to the fore, the credit is tightening up and, surprise, it turns out we really can't get something for nothing, despite what the NAR and the banks were telling us all this time.


Torch and pitchfork time. 

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