Say Bye- Bye to Stated income "liar loans" and hello to manditory escrow accounts

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Mortgage and Lending with Academy Mortgage NMLS#329710

 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

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Rainer
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Jacob Morales - Arizona Mortgage Planner
US Bank - Scottsdale, AZ

Whenever the government gets involved with stuff like this it ends up getting worse rather than better. I have a lot of people I do no ratio, no doc, NINA, and even SISA loans for. I have never once in the hundreds of loans I've done had ONE person go into foreclosure. It is silly to assume that the "liar" loans are the sole culprit. It comes down to lender and even consumer responsibility. Too many people want to blame the lenders and loan products and are failing to remember that no one is forcing these people to sign.

If someone came up to me with 100 pages of legal documents and said I'd have a pot of gold once I signed it I would still read it. People shouldn't sign any legal documents until they know what they say, what they do, and what it could mean to them down the road. Period.

Jul 19, 2007 01:49 AM #1
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Rainer
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John Cashion

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