ING suspended all stated income loans effective today. Hat tip reader Dan for the news. Interesting to note that the bank claims that performance of the loan isn’t the issue; rather the perception of a problem by the investors of the product. With no transparency and the inability of investors to figure out which way is up right now it’s no wonder their backing away - even from product that may have inherent benefits.
It will take a long time for investor confidence to return after the binge of fraud and lack of underwriting standards. I believe we’ll continue to see more of this from big lenders.
“Stated Income” Suspended
We are suspending our Stated Income program effective for loans received today (03-12-08) after 10:00 am ET (7:00 am PT). Income must be verified on all loans received after this time.
Be assured that the performance of our Stated Income loans thus far has been excellent – much better than any group of loans we measure against, including Fannie Mae and Freddie Mac.
We are suspending our Stated Income program at this time, however, because there is a perception in the market that Stated Income loans are risky and could affect our portfolio. We hope that in the near future we will be able to offer you a Stated Income program again.
