Less than 5% of loans obtained over the past 10 years actually were actually these types of loans. Which is not to say Stated loans were not popular, cuz they were. However, most banks still wanted a believable DTI to greenlight a loan. Even in Stated loans, if someone worked at McDonalds they weren't going to be able to buy a 300,000$ dollar house. Were there cases where people made up jobs for them? Of course, I did that for several people myself. But they were mainly drug dealers. You could say they were carpenters or whatever, as long as they paid their bills on time and had 660 plus scores, it was no problem. Problem is when your average actually "working" poor person wanted to get a house they couldn't afford, we could make up a job for them, but the underwriters would always see that they worked at Wendys etc.(poor people apply for a lot of credit cards) only 6 months prior when they looked at their credit reports and that was a huge red flag. Stated loans are part of the problems we are facing, but a very small part tbh.
