Originally Posted by EscortBiz

Most home loans back in the day always required you to submit W2's / 1099's / Bank Statements or whatever to prove what you have an income, then they started the stated income loans, that means that the bank says we will charge you a extra precent or two but you dont have to give us any proof of how much you make, then once they saw people lied since defaults started showing up they started slipping in a form that most people didnt even notice they signed called a 4506-T, its one page that gives the bank permission to contact the IRS and get your past 2 or 3 year tax returns, there are companies like http://www.veri-tax.com/ banks would send the form to and within a few days have the real info on what you reported to the IRS, now must banks did not run it just keep it on file with the intent to run it if you default, and now they are starting to run some and its obvious people lied and that is a a serious crime.