Wednesday, August 15, 2007

Should Stated-Income Loans Be Barred?

Jack Guttentag is becoming one of my favorite new columnists. He is a professor at Wharton who specializes in the Mortgage industry. His latest columns provide some very good information during a time when a lot of misinformation is being spewed by the media.

In this column Jack talks about Stated Income Mortgage Loans, which are loans in which the applicant's income is not verified by the lender. While on the surface this may seem crazy, in reality there is nothing wrong with it if done correctly. Contrary to popular opinion, it is not stated income loans that are causing the problems in the mortgage market.

If you are interested in learning about the recent problems in lending and how the industry works, Jack's articles are great. This article in particular will give you an easy to read, concise view of the debate about Stated Income Loans. Scott Dauenhauer, CFP, MSFP, AIF 949-916-6238