Accoding to The Arizona Republic, "Liar Loans May Prolong Mortgage Crisis", August 19, 2008, it's not only the greedy, unethical mortgage lenders that are the cause of the mortgage crisis, it's also the borrower. The borrower goes after the "ninja loans" short for "no income, no job, and no assets." The borrow lies to the mortgage company about his/her income, job, and assets, knowing full well he/she can't repay the loan, but the mortgage lender is also at fault as he/she doesn't require proof of income, job, and assets.
And to make matters worse they are more heavily located in my home state of Arizona, besides California, Florida, and Nevada.

Unfortunately, besides blaming the borower, and the mortgage industry, I also blame state government, for not having the foresight to legislate common sense, i.e, forcing the mortgage lender to require proof of income, job, and assets.

It's a little late for mortgage lenders now to require this information. Ironically, in the past they used to require extensive proof without the government legislation!

Not only the State of Arizona was lack in oversight but also the federal government with Fannie Mae, and Freddie Mac also participating in sour loans that required no proof of income, etc.

You know if my friend Joe wanted to borrow $50, and I knew he had no job, no income, and no assets, I wouldn't lend him a dime. Common sense.

What is the world coming to? Yes, people complain and rightly so that the mortgage industry mislead them misquoting the percent of interest Adjustable Rate Mortgages(ARM) can fluctuate, but those that lied about their income really have no one to blame but themselves, and taxpayers shouldn't be bailing them out for their own stupidity. Nor should the liars gain any of our sympathy.

For more information on credit, see my series of credit information articles at http://www.associatedcontent.com/user/340872/l_wagen.html