Federal Reserve Chairman Ben S. Bernanke told Congress yesterday the fed was examining rules in several areas, including restrictions on "liar loans" that do not require proof of a borrower's income, limits on financial penalties for borrowers who make early payments, and a mandate that some lenders require set-aside payments for borrowers' property taxes and homeowners' insurance.
With the implosion of Subprime lending, and the recent spike in foreclosures there is a lot of finger pointing and the search for people to blame. The worse this problem gets, and the more people lose their homes and their investments, the greater pressure there will be to do justice.
The obvious target will be "Stated Income" or "No Income, No Asset" (NINA) loans. These are commonly referred to as "Liar Loans" because the only people who want them are people who do not want to tell the truth about their income or their assets. You will often hear that these are used for people who cannot document their income.
These type of loans, used correctly benifit alot of people
Buy once again the actions of a few unscupiolous people................
fire up the burning stakes the witch hunt is about to get good