‘Liar loans’ worsen mortgage crisis

Another wave of losses in the housing market is coming from so-called “liar loans,” mortgages approved without requiring proof of a borrower’s income or assets. The loans are defaulting in record numbers, with the most loans concentrated in California, Florida, Nevada and Arizona. About 13 percent of borrowers were at least two months behind on payments in May, nearly four times higher than the same time last year, and losses could total $100 billion.