Wednesday, May 13, 2009
More on Lax Regulation and Greed
CityWire: Liar loans and the case of the sleeping regulator
Here’s an unsurprising fact that emerged yesterday: in 2007 some 45% of mortgages were advanced without a check on the borrower’s income.
Some of this was ‘fast-tracked’ by the lender – a euphemism for cutting corners to keep costs down and volumes up. An increasing amount, however, was ‘self-certification’, where the borrower ‘certifies’ his or her own income without providing payslips or equivalent, and the lender believes them.
It was all nonsense, of course.
Posted by lukeskywalker @ 11:58 AM (239 views) Add Comment
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