A liar loan is a category of mortgage that refers to low-documentation or no-documentation mortgages. On certain low-documentation loan programs, such as stated income/stated asset (SISA) loans, income and assets are simply noted on the loan application. On other loan programs, such as no income/no asset (NINA) loans, no income and assets are given on the loan application form. Some liar loans take the form of NINJA loans, an acronym that means the borrower has no income, no job, and no assets to speak of. These loan programs open the door for unethical behavior by unscrupulous borrowers and lenders, and have historically been abused substantially.
Click to rate this post!
[Total: 0 Average: 0]