Posted by Frank Chin on August 21, 2009 at 09:57:28:
Herb:
I used to get my no doc loans from Greenpoint, and in my area. WaMu did it too, and then there was a third, a small local saving and loan, that calls the loans NO DOC, but it wasn’t actually no doc, as they call to verify the infomration, though they say I don’t have to swear to it.
Unfortunately, if you read the papers the last two years, all of these guys are out of business. An investigation was done on the cause of the mess left behind by the banks, and it was found much of the problem was caused by NO DOC, otherwise known as “Liar” loans.
My understanding is the banks swore they weren’t going to do “no docs” aymore, since Congress is under tremendous pressure due to the huge cash infusions given the banks, and taxpayers are really p%%ssed off.
And as much as I love NO DOCs, I don’t think I’ll see them any time in the near future. There were too many pigs in the trough that got fat, and ruined it for everyone.