Question

Steve and jennie got a stated income loan in 2008 from qxq. as it turns out, they lied on their application and said they made more money than they actually do and just a couple of months later they couldn't make their payments and defaulted on their mortgage. who or what is at fault?​

Answer 1

I believe, the loan officer is the one that at fault here.
It is the duty of the loan officer to do background checks in order to make sure that people who take the loans reveal the truth about their financial situation.
If they do this properly, Steve and Jennie wouldn't be able to receive the loan in the first place.