4 out 5 homeowners in my state used stated income

So that's comforting.  According to mortgage data made available by the federal reserve bank of New York 4 out of 5 homeowners in my zip code state who secured their property with an Alt-A loan used stated income to qualify for their mortgage.  Actually it's 83%.  And 72% of the loans are ARM loans. That is a jaw-dropping statistic, is it not???  Luckily only about 3% are due to reset in the next 12 months.  So we've got some time until the bottom drops out of my zip state. This is the problem people.  80% of folks in my typical state, California, zip code bought their home with stated income.  Max out the loan limits, offer modifications, expand FHA, make Fannie and Freddie buy more and leverage their capital.  Guess what?  It doesn't