No More Stated Income Loans

The Federal Reserve Board, in new guidelines to all mortgage lenders, is expected to require the elimination of “stated income” loan programs. It is not premature to imagine the effect of this rule on the housing market and on the mortgage industry.

It is safe to say that in my neck of the woods, Southern California, those “liars’ loans” play an immeasurable role in keeping the housing market from total collapse, as hardly anyone here can qualify to buy the home they live in.