Saturday, October 25, 2008

No Downpayment - one reason for the Mortgage Meltdown


Trooper York said...

I remember when I was a baby accountant back in the 1970's. You had to file a form 4506 which got the bank an IRS certified copy of your tax return so you could get a mortgage. Then credit loosened up and people began giving fake tax returns to mortgage brokers who fed them to tame bankers and now we are in this fix. I recently saw my first request for a form 4506 since 1982.

rcocean said...

Trooper, I had to give a blood oath and offer up my first born as collateral to get a mortgage. This graph shocked me.

I kept wondering how people could afford the house prices in LA, now I know.

Great comment on the Tax Return.