In any industry there are unsavory characters looking out for their own gain with reckless disregard for the success of their client. This was the foundation of the sub-prime mortgage mess.
In the home loans business, the flip side of that coin is truth-in-borrowing. If you are trying to obtain a home mortgage and withhold information or intentionally try to beat the system, it will really come to no good end.
I heard about a mortgage transaction that almost fell apart a few days before closing because a woman misrepresented the status of her property holdings under the guise that her spouse was not on those loans and that the properties were being sold. However, after further investigation, they were actually distressed properties and on the market as short sales.
It basically became a twisted mess and personified that tangled web that is woven when people employ deceit to borrow money. In this case, their withholding of information was intentional, but sometimes it can be chalked up to naiveté.
Bottom line…if you are buying a home and borrowing money to purchase it, just disclose everything. If it is irrelevant, your mortgage broker will let you know. But if it is a key piece in your puzzle, it can be addressed before it blows up and you miss the window to buy that home. It pays to tell the truth.