When I refinanced my home through Ameriquest, the loan officer said something that seemed quite strange to me. He asked me if I wanted to qualify for the loan using "stated income." He explained that this would simply require me to state my income without the need for verification.
I thought that this method of loan qualification was crazy because anyone could lie and get a loan. I didn't lie, and gave him the correct information because it was simple, and I just couldn't resist because I was curious to see how this worked. It went through. I just stated my income, and got the loan.
I have never ceased wondering how many people lied to get a loan that they simply could not afford. This video explains how and why the bankers used this outrageous loan qualification process.