“most are not.”
Letter of the law, sure, but I think most of the loans were made against sound finacials in the sub prime market. As long as prices were pumped up, no problem. I also wonder how many appraisals were inflated to match the loans.
Any “no income verification” or loan made to illegals is fraud IMHO.
Illegals - yes those are fraud.
No Income Verification? Originally not, but became so as people abused them.
Originally, they were for self-employed people, or those who made a lot of tip money and didn’t claim it on taxes - there was no other way they could every qualify.
Then, guidelines loosened, and people abused them to buy houses they honestly couldn’t afford.