In the early 2000s, borrowers no longer needed to provide proof of employment or income. These were popularly called "no doc" or "liar loans" because banks weren't bothering to verify the "truth" of what borrowers were claiming on their mortgage applications. This was one of the factors that laid the groundwork for the disaster in the United States.

Question

Quizplus · Accepted Answer

This statement is true. The lack of verification of employment and income on mortgages contributed to the housing bubble and subsequent financial crisis in the early 2000s.

In the Early 2000s, Borrowers No Longer Needed to Provide