Lenders Loose on "Liar Loans"

Things were getting a little bit crazy in the housing market in recent years. You couldn't turn around without seeing a solicitation for "real estate seminars". The consensus seems to be that lenders helped create the recent bubble with loose lending standards -- they'd offer money to anybody. Some borrowers got away with stretching themselves too thin by using "no-doc" or "low-doc" loans. These loans allow you to borrow without documenting your ability to pay. A recent NPR business podcast follows the story of a borrower who took this route, and discusses how banks may avoid these loans going forward.