Gee, don't think that this kind of crap has anything to do with the huge freddie mac/fannie mae scandal that we have heard nothing about from the msm. You know, the one that made enron seem like Sister Gertrude stealing the bingo money. You know, the one that taxpayers will be paying off for years.
With no documentable income, bank accounts evidencing a history of cash flow or a FICO score, the bank is basically lending money like a loan shark. If these loans go bad, the bank is going to be on the hook entirely. If FNMA is buying these loans, Congress should be looking into firing somebody over there. And when the CA real estate market is no longer on the upward climb, these loans are going to start rotting on the vine and the banks are going to be holding billions in bad paper which will further depress the real estate market for those people who have no choice but to stay in their homes.