Comments on: Rand on the sub-prime crisis http://www.ontheborderline.net/rand-on-the-sub-prime-crisis/ Tu ne cede malis sed contra audentior ito. Defending the constitution from government intrusion where ever it may be lurking. Thu, 02 Feb 2012 13:01:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: BobZiller http://www.ontheborderline.net/rand-on-the-sub-prime-crisis/comment-page-1/#comment-10042 BobZiller Fri, 07 Sep 2007 19:12:22 +0000 http://www.ontheborderline.net/?p=4769#comment-10042 I learned in High School economics 101 house payments should equal no more than 25 percent of the income. In the 50's when taxes were lower, the 25 percent was not defined; disposable or gross income. Mortgage companies now classify some loans as Nodocs; that is, a loan where the borrower's word is taken on his income without verification. Even bankers got sucked into this. I learned in High School economics 101 house payments should equal no more than 25 percent of the income. In the 50′s when taxes were lower, the 25 percent was not defined; disposable or gross income.

Mortgage companies now classify some loans as Nodocs; that is, a loan where the borrower’s word is taken on his income without verification.

Even bankers got sucked into this.

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