John Dugan, the Comptroller of the Currency (who is responsible for regulating multi-state banks) has made some tough statements about the need to restrict "stated income" mortgages, also know as "liar loans"

"But, what may be suitable in limited circumstances has now become acceptable as
general practice. For subprime loans, stated income has become the rule rather than the
exception, and in a very brief span of time. While this practice was relatively rare just a few
years ago, last year nearly 50 percent of all subprime loans relied on stated income."