Apr
30
Minimal Paperwork? No Problem for Mortgages in This Deal
By-
Lone Star unit sold more than $375 million of mortgage bonds
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Around a quarter of mortgages were made with low documentation
A unit of private equity firm Lone Star Funds sold more than $375 million of bonds backed by mortgages requiring minimal documentation from borrowers, a practice that before the 2008 financial crisis contributed to the creation of “liar loans.”
Over 20 percent of the loans packaged into the Lone Star bonds were made to borrowers who proved their income with just a single month’s worth of bank statements, documents tied to the deal and seen by Bloomberg show…
Minimal Paperwork? No Problem for Mortgages in This Deal
