Sample stated loan research shows 3 out of 5 inflated income at least 50%

Want to know why stated income loans are called liar loans? Because people lie on stated income loans. Not just some people, some of the time and by some little exaggeration. It's most of the people, most of the time by mostly large exaggerations. Take a look at this Slate article on the liar loan and you'll see why subprime is a drop in the bucket. Pay close attention to Mish Shedlock's analysis of a pool of stated income loans with a median FICO of 705 and tell me we're through the worst of it. Remember, most of the good credit loans are ticking down to adjustment as we speak. Wave number two, gaining on the horizon is going to be grim. From the article on the liar loans: In 2006, a man named Steven Krystofiak gave a statement in a Federal Reserve hearing on mortgage regulation,