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I don’t know where this happened then. I am in real estate and even been involved in some “no doc” loans. But as you know, I’m sure, even in these “no doc” loans there was some documentation required just not the typical pay stubs, etc. 1040’s were required but not given as much weight. Maybe some illegals got around it somehow but not nearly as important a number as you seem to be assigning them.

I don’t know where this happened then.

Apparently, right under your nose.

I am in real estate and even been involved in some “no doc” loans. But as you know, I’m sure, even in these “no doc” loans there was some documentation required ......

What part of "fraud" and "scam" and "con game" do you have trouble understanding?

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The Federal Bureau of Investigation has opened criminal inquiries into 14 companies as part of a wide-ranging investigation of the troubled mortgage industry, F.B.I. officials said Tuesday. ......... As part of its investigation, the F.B.I. is cooperating with the Securities and Exchange Commission, which is conducting about three dozen civil investigations into how subprime loans were made and packaged, and how securities backed by them were valued. ...... Many of the cases the F.B.I. has brought so far have focused on local or regional mortgage fraud rings that involve speculators, loan officers, brokers and other housing professionals. State officials have been active in bringing mortgage cases. The New York attorney general, Andrew M. Cuomo, is investigating whether Wall Street banks withheld damaging information about the loans they were packaging.

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Four Brokers Charged With $5 Million Loan Fraud ........ During the time period covered by the indictment, Michael Lance Persac, Jason Ellis and Carroll F. Ellis, Jr. obtained fraudulent loans for approximately 65 borrowers totaling over $3 million. The indictment alleges that from June of 1999 through August of 2005, Michael Lance Persac, Jason Ellis and Carroll F. Ellis, Jr. conspired to prepare false and fictitious documents to insure that lenders would make mortgage loans to prospective borrowers. Unless the mortgage loans were successful, Michael Lance Persac and Jason Ellis could not receive a fee for their brokerage services.

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Foreclosures linked to subprime fraud ....... A New York state investigation of subprime mortgage practices reveals fraud proliferated in the state, which had the eighth-highest number of foreclosures in 2007. ..... Mortgage scammers took advantage of loopholes in New York State lending laws to defraud homeowners and lending institutions all over the state, according to a new report released Thursday. ..... ........ Many of the most egregious cases involved clearly predatory lending practices in which there was never any possibility that the borrowers could afford to pay off their loans.

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The FBI reports that mortgage fraud is the country's fastest-growing white-collar crime; .... A contributing factor is the trend of consumers to seek loans from mortgage brokers who have access to multiple loan products from many different mortgage lenders, rather than from their local banks. The National Association of Mortgage Brokers reports that with as many as two-thirds of all mortgage loans originated by mortgage brokers, lenders often become dependent upon local loan brokers to provide accurate, truthful information about a loan applicant's financial condition during the mortgage process. ............ The climate was ripe for scams on both sides of the mortgage process—by unscrupulous con artists seeking to make a fast buck out of the mortgage process and by unscrupulous loan originators who sought a fast commission by moving unsophisticated consumers into high-cost loans they could not afford. ...... Thus, a vicious cycle began. The real estate boom, fueled in part by weakened lending standards that sparked excessive demand, drove up prices.

Good for you that you have kept things clean in your work. However, there is plenty of evidence, especially in California and other places that have lots of illegals, of exactly these things (no doc loans) occurring.