Stated Income = Stated Fraud?
On the 1003 on the bottom of page 4 it says: "I/We fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make false statements concerning any of the above facts as applicable under the provisions of Title 18, United State Code, Section 1001, et seq."
That's serious!
Besides the ethical, moral and DTI/foreclosure issues here, understand more and more regulatory agencies are focusing on these Stated loans and holding Brokers and Loan Officers responsible. If you know the income is wrong, you are aiding and abetting criminal fraud and the risk is not worth the Big Fat Commission, just because
you flipped it to Stated.
The purpose of 'Stated' is for documentation relief, not to inflate income. If you suggest, alter, or change the income, you are committing fraud.
PS: And, yes of course I know the wholesale AE is a major part of this problem -- it's simple GREED all the way around
