Aryanna Hering did not have pay stubs or tax documents to prove income to a bank to purchase her home. She still was able to acquire a mortgage. Unconventional mortgages are making a comeback. She was able to prove income via a long chain of bank statements and by interviews with the clients she works for. These loans are different then the “liar loans” of past years. Her income was still verified, just not through traditional means.
- It is asserted that a certain flavor of mortgage that was associated with the housing meltdown a decade ago is now on the horizon.
- Inside Mortgage Finance reports that these unconventional loans were issued by about $34 billion in the first three quarters of last year.
- During the financial crisis, loans called “liar loans” soared and these loans were so named because borrowers misstate their incomes while lenders didn’t request documentation.
“Aryanna Hering didn’t have pay stubs or tax forms to document her income when she shopped around for a mortgage last year—a problem that made it tough for her to get a loan.”