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Comptroller of the Currency Barbara Grunkemeyer (pictured) has been in the forefront of the fight against so-called “liars’ loans”—that is, loans that don’t require documentation of income.
The biggest victims of liars’ loans are the lying borrowers who overstate their incomes, buy houses they can’t afford, and go bust. Here are three pieces on the topic:
A report last year by Grunkemeyer’s office on the problem of predatory lending;
A first-person story (can’t verify its accuracy) by a woman who bought a house with a liars’ loan and got into deep financial trouble;
A column by ace blogger David Porter of Pacesetter Mortgage, who says liars’ loans ought to be banned.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.