A debate about a $1 million home loan made to a stripper in Charlotte, North Carolina has turned up in the bond insurer MBIA’s case against Credit Suisse.
The loan to the stripper was a “stated income” loan. The stripper apparently claimed to be earning $12,000 a month, for an annual income of $142,000. Credit Suisse bankers ask in emails submitted with court filings by MBIA whether such a figure is realistic.
“We have an adult entertainer that is stating $142,800 per year. While I know this profession can make decent money we feel that $142,000 is overstated in NC. But based on the broker’s email below, they strong believe this income is not overstated and would like the loan to remain stated,” a Credit Suisse employee asks a Managing Director at the bank named Rob Sacco.
What follows is a fun exchange in which the mortgage brokers attempt to defend that level of income and the Credit Suisse guys bat down their arguments. (Click here to read the emails in full at Business Insider.)
“Agree that is appears to be overstated. If it isn’t overstated, why can’t she give us bank statements?” Sacco writes.
The brokers point out that strippers usually operate in cash. Sacco shoots back, asking if she’s mailing cash in for her mortgage and other bill payments.
“Those envelopes could get heavy full of small $ bills,” he writes. “I don’t believe she is making $12k per month."
The stripper reportedly never made a payment on the loan.
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