Wednesday, June 06, 2007

Those Troubling State Income Mortgages

In a recent statement, Comptroller of the Currency John C. Dugan said he is increasingly troubled by the growing use of unverified "stated income" in sub-prime lending. Dugan argued that stated income (1) presents too great a temptation for misrepresentation and, in its most extreme form, outright fraud; (2) undermines transparency; and (3) is not a safe and sound underwriting practice. Dugan also said that he believes the federal agencies should address this practice in their pending guidance. To view the OCC press release, here or to view Dugan's remarks, click here


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United States of America (Press Release) February 26, 2009 --

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