One lender discovered that a large percentage of its customers who applied for stated-income loans exaggerated their incomes by more than 50%, according to the Mortgage Asset Research Institute.The unidentified lender sampled 100 of its stated-income loans and checked the borrowers' salaries with the Internal Revenue Service. "Ninety percent of the stated incomes were exaggerated by 5% or more," MARI said in a recent report to the Mortgage Bankers Association. "More disturbingly, almost 60% of the stated amounts were exaggerated by more than 50%." Lenders that don't require income verification are opening the door to fraudsters, MARI warns. "These results suggest that the stated-income loan deserves the nickname used by many in the industry -- the 'liar's loan'."
-
A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
9h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
11h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11