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Stated income loan – Wikipedia – A stated income loan is a mortgage where the lender does not verify the borrower's income by. The lack of verification makes these loans particularly simple targets for fraud. Stated income loans fill a gap of situations which normal loan.
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Mortgage meltdown – Liar loans include NINA (No proof of Income/No proof of Assets. with 22 percent coming from first-time home buyers. Calder says Cunningham Mortgage is starting to see an increase in people.
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This is actually not totally true. The primary reason was low LTV loans and loans being approved with a lack of equity. Which is the higher risk – an 80% LTV loan to someone with little assets and proof of income or a loan with 50% LTV with good credit and no income verification?