Absolutely, Some folks were not required to show a W2 or any sort of proof that they even had a job.. Or, so I've been told..
Yes, in many states there were no documentation loans. No money down even. This led to many incidences of fraud.
The idea was to increase the percentage of home ownership in the country.
This caused price inflation in many areas. In places like AZ in 2002 people were literally camping out to be the first person to buy a house going on sale this coming weekend in a subdivision. It led to speculation. People buying multiple houses and selling them six months to one year later.
Eventually, the house of cards collapsed.