Ninja Loan

Crises Economics, Roubini

As securitization became increasingly commonplace in the 1990s and 2000s, mortgage brokers, mortgage appraisers, ordinary banks, investment banks, and even quasi-public institutions like Fannie Mae and Freddie Mac no longer subjected would-be borrowers to careful scrutiny. So-called liar loans became increasingly common, as borrowers fibbed about their income and failed to provide written confirmation of their salary. Most infamous of all were the “NINJA loans,” in which the borrower had No Income, No Job, (and no) Assets.

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Hillarious shit.