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Predatory Subprime Lending Still Prevalent

Lying Gets You Nowhere, Unless You Want a Subprime Loan

The housing crisis has spun out of control to the point that the Federal Reserve has begun to probe the government for immediate and effective interference. Home foreclosures have been unfortunately common across the US, as more and more homeowners can no longer afford their mortgages. While you might assume that lenders have seen enough bad press over the course of the current crisis, it seems some haven't witnessed enough foreclosures to put their predatory practices to bed.

When one woman told her Countrywide loan officer that she was a stay at home mom, the officer suggested that she could lie about her husband's total income because of his managerial title. On top of that, she said the loan officer asked her to claim that she earned $60,000 a year when she wasn't actually earning any income. The woman inquiring about the loan summarized these actions best saying, "It was really every sleazy move in the book."

Source

shanimalcracker shanimalcracker 9 years
This is awful.
Smart-Living Smart-Living 9 years
bellaressa- You do have to give documentation, but the some of the docs filed are completed with false information...that's how people get loans they can't afford.
bellaressa bellaressa 9 years
I thought you had to give documentation, this is so sad. Makes it harder for people who really want a house.
tiff58 tiff58 9 years
This is just baffling to me...I had to submit SO MANY documents when I got my mortgage.
meumitsuki meumitsuki 9 years
I hope she went to another company for her loan.
MindayH MindayH 9 years
hmmm...interesting. Lying usually isn't the way to go - especially with things that you can verify!
RosaDilia RosaDilia 9 years
Not surprising at all.
Shopaholichunny Shopaholichunny 9 years
Oh dear! :OY:
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