But I can understand your point. First off, mortgage companies throughout the United States were involved in fraudulent mortgage loans that over time came crashing down. Let me explain two types of mortgage banks. There are portfolio lenders and correspondent lenders. Portfolio lenders were hit hard once many of their loans went soar as they began to lose money. However, it was the correspondent lenders that caused problems in our economy as a whole. BUT dont keep the loan in their institution for very long.

Instead, they then sell that mortgage loan to the secondary market such as Fannie Mae or in the stock market.

As a result, lenders stopped providing further mortgages as they began to recuporate their loses. The month of late August 07 and September 07 was the worst months in mortgage lending history in a very long time. The damage has been done. NEED these programs because their source of income is tooooooo difficult sometimes to prove and document.

REASONABLE relation to their stated income. This is why stated income loan products exist. Why stated income AND stated asset programs came about Im not sure. But the most irresponsible part came in California when lenders began to provide stated programs on salaried employes. This is why we have what we have today. MORtgage BROkers are ruinning our economy. More specifically, irresponsible mortgage brokers. The same story was with accountants with the fall of Enron.