I had that same issue when I was buying a house in the 90s. They were trying to figure out if I borrowed money from someone to cover the closing costs. I remember asking when we were purchasing our house in 2000 if they needed a statement of my accounts and they just took the first one and never bothered looking at it again.

There was a very very interesting program on, either MSNBC or PBS (I only get 5 channels, it had to be one of those!) about what happened with the mortgage industry. They showed a speech by Bush where he wanted to see more low income people own their own homes, and so, the mortgage industry began doing 'reverse redlining' where 30 years earlier they had drawn these red lines around undesirable neighborhoods where they didn't want to fund. Now they were going in those lines and funding housing within those lines, but with not the best ideas, such as interest only loans. I wasn't aware of that, my anecdotal experience was with the upper middle class that were just spending out of control and just way over extended on loans and mortgages. I have yet to see any type of information where they compare the salaries of those going up for foreclosures. Is it what they were talking about on this program or is it the upper middle class and their McMansions? I would like to see some kind of demographic on it, I guess I haven't looked hard enough.

It was sad to see people that were really stuck, they had already put money into their houses and soon realized that their payments were going through the roof. I know that everyone should be paying attention and understand the terms and conditions of their loans, but on the other hand, what were these banks thinking? Couldn't they figure out that people weren't going to pay double their payment? That's the part I don't get. Or was it just the fact that the people that were doing left the mortgage business as soon as they made a scad of cash?