Confessions of a Former Mortgage Broker: What We Did Was Criminal

While the big fish will likely evade scrutiny through readily accessible escape hatches, it is doubtful that less important players will be allow to find them.

With stated-income loans, the banks did not ask for supporting documents like W2 forms and pay checks. They did not verify statements about income against what was reported to the IRS. Yet the first job of a bank in lending is to check the supporting documents.

Following civil charges being filed against Goldman Sachs, what is clear now is that the crime of stated-income mortgages deserves to be explored fully by criminal prosecutors.

Source: finance.yahoo.com