The US Federal Reserve has issued stricter rules for the US lenders here
The plan would bar lenders from making loans without proof of a borrower's income,
In addition it would prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value.
It comes to something when the banks have to be told to check incomes declared on mortgage applications and make sure the mortgage can be repaid.
This kills off the LIAR LOANS in the US. I wonder how long until the FSA figures our the same is needed here.
Well it was needed 8 years ago, but the FSA works slowly.