In 2006, QXQ opened their doors to finance home mortgages. One of the easiest loans for potential homeowners to obtain was called a stated income loan. These loans were money in the bank to QXQ because people just had to fill in the forms with their current salary, there was little documentation required, and everybody won. The buyers got their house and QXQ got paid. 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. Just a couple of months later they couldn't make their payments and defaulted on their mortgage. Who or what is at fault?
A. Steve and Jennie
B. Securitization
C. Management fraud
D. QXQ, the mortgage company
Answer: D
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