[Jim Noble]

In other words, the only way a borrower can get a loan after August 1st is to show pay stubs, W-2’s, tax returns, and bank statements.

Good.

And if all the vultures who have been making a living off of undocumented loans are crushed in the process, double good.

[RockinRight]

What do you do for a living, if I may ask?

[Jaalle]

When a Lender is underwriting a real estate secured loan, all they are doing is “risk assessment”. If according to the credit report analysis, the Borrower has the necessary credit depth and the underwriter can clearly see the guy paid his bills since college on time every time, then the chance of him/her defaulting on the loan is low...therefore they can state their income. (we don’t and shouldn't’t care if the guy works as a male escort and cheats on his taxes...not our job} Why would a Mortgage Broker be in the business of enforcing tax laws by asking for income documentation unless it is nesseciated by Borrower’s weak credit standing. All we care about is Borrower’s ability to pay back the loan, and this can easy be established through the underwriting process and credit analysis. Whatever the case, nothing ever gets solved by more knee jerk regulations and bureaucracy.