These stated loans at high LTV's is what has brought mortgage lending to its knees. Worse then subprime if you ask me. Subprime borrowers by definition refers to the credit status of the borrower (being less than ideal) but at least you are verifying their income and asset information to get a feel for their capacity to repay. Stated/Stated is qualifying someone on bogus income and asset information. I've seen bank tellers, telephone repairmen, postal workers etc. "state" that they earn well over 100k/yr and "state" that they have in excess of over 200K in the bank when anyone in their right mind knows their not making anywhere close or have that much saved at 28 years old. Now I say c'mon, what the hell were these lenders thinking. Just because they have 680+ credit scores that consisted of a mastercard, gas card and Macy's card they were given loans of 300K, 400K, 500K and even more, at a teaser rate no less. Disaster waiting to happen....and it did. If these stated loans do make a comeback it should be stated income only and only for self employed borrowers who like to screw the government and don't report what they really make.