Replies

>>Those loans were never legal in Texas.

Never, ehh?

Well let's see what Mr. Google says:

Join Date: Jan 2002

Location: Denton, Texas
State: Texas
Professional Status: Certified General Appraiser
Posts: 8,258

Subject: "Liar loans" - in Texas it's now a felony to lie

Date: 01-04-2008, 08:18 AM

"We're all familiar with Alt-A loans, also known as the "liar loan". No doc, good credit, relies on a statement from the borrower as to assets, debts, etc.

A bill that was passed in the last Texas Legislature has quietly gone into effect. Le[n]ders have to look at the submission and see if it passes the "smell test". Do the assets and debts in the application match the credit report? Is the job and income data confirmable? If things don't match up, it is referred to a law enforcement task force without telling the borrower that he's now being looked at. Lying can result in a felony charge, with prison time and a $10K fine.

Yes, this should have been in place years ago [emphasis added]. But it is now, and maybe other states will follow suit."

http://appraisersforum.com/showthread.php?t=131947

Did Never start sometime after 2008?