The Death Of Stated Income

I have several self employed clients...perfect mortgage histories and FICOs of 700 plus.

With the current housing market many of these clients have LTV's of 80% or greater.

But becuase they are self employed and have so many writeoffs, these clients do not show enough income to go full doc. It is obvious my their clean mortgage histories they can afford there mortgages.

There are NO stated income programs left for loans with higher LTV's!

I have one client right now...whose at a 82% LTV..stated income, verified assetts, FICO 720. Can't get a loan. His rate will soon adjust to a payment he will not be able to afford. He may lose his home.

Is this fair to punish many of these quality stated borrowers for the mistakes of a few? Thoughts???