No Income No Asset

No Income No Asset
For other uses of the term "NINA", see Nina

No Income No Asset (NINA), No Income No Job or Asset (NINJA) or simply Nina Loan[1] is a term used in the United States mortgage industry to describe one of many documentation types which lenders may allow when underwriting a mortgage.

NINA programs are ostensibly created for those with hard to verify incomes (waiters, etc.) but in actuality have been popularly used in situations where aggressive mortgage lenders and brokers did not want any trouble qualifying otherwise non-qualifying loans, thus becoming a significant factor in the subprime lending crisis. A significant number of NINA loans were never possible for the applicant to repay and have resulted in defaults for this reason, as laid out in detail by investigative reporters, including the reporting of This American Life and Planet Money that culminated in the Peabody- and Polk- award wining episode "The Giant Pool of Money."


Contents

No Income No Job no Assets

A NINJA Loan is a type of subprime loan. It was described as a No Income, No Job, (and) no Assets loan because the only thing an applicant had to show was his/her credit rating. The phrase was coined by Charles R. Morris in his book The Trillion Dollar Meltdown, which went to press March 3, 2008 with the manuscript being written in November 2007. They were especially prominent during the United States housing bubble of the 2000s but have gained wider notoriety due to the subprime mortgage crisis in July/August 2007 as a prime example of poor lending practices[2]. The term grew in usage during the 2008 financial crisis as the sub prime mortgage crisis was blamed on such loans. It works on two levels - as an acronym; and allusion to the fact that ninja loans are often defaulted on, with the borrower disappearing like a ninja.

The term was also popularized in the 2010 US film Wall Street: Money Never Sleeps by the character Gordon Gekko played by Michael Douglas.

See also

References

  1. ^ http://www.brokeroutpost.com/reference/59076.htm
  2. ^ Ninja loans explode on sub-prime frontline

External links


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • income generating asset — property that is financially worthwhile because it produces earnings …   English contemporary dictionary

  • Asset poverty — is an economic and social condition that is more persistent and prevalent than income poverty. It can be defined as a household’s inability access wealth resources that are sufficient enough to provide for basic needs for a period of three months …   Wikipedia

  • Stated Income / Stated Asset Mortgage - SISA — A type of reduced documentation mortgage program which allows the borrower to state on the loan application what their income and assets are without verification by the lender; however, the source of the income is still verified. SISA loans… …   Investment dictionary

  • No Income / No Asset Mortgage - NINA — A type of reduced documentation mortgage program in which no income and no assets are disclosed on the loan application, but employment is verified. NINA loans usually fall into the Alt A classification, and may carry a higher interest rate than… …   Investment dictionary

  • Asset-backed security — In finance, an asset backed security is a type of debt security that is based on pools of assets, or collateralized by the cash flows from a specified pool of underlying assets. Assets are pooled to make otherwise minor and uneconomical… …   Wikipedia

  • Income trust — An income trust is an investment trust that holds income producing assets. The term also designates a legal entity, capital structure and ownership vehicle for certain assets or businesses. Its shares or trust units are traded on securities… …   Wikipedia

  • Asset-based egalitarianism — is a form of egalitarianism which theorises that equality is possible by a redistribution of resources, usually in the form of a capital grant provided at the age of majority. Names for the implementation of this theory in policy include… …   Wikipedia

  • asset — as·set / a ˌset, sət/ n [back formation from assets, singular, sufficient property to pay debts and legacies, from Anglo French asetz, from Old French asez enough] 1: the entire property of a person, business organization, or estate that is… …   Law dictionary

  • Asset turnover — is a financial ratio that measures the efficiency of a company s use of its assets in generating sales revenue or sales income to the company. [cite book |last = Bodie |first = Zane |coauthors = Alex Kane and Alan J. Marcus |title = Essentials of …   Wikipedia

  • Asset stripping — involves selling the assets of a business individually at a profit. The term is generally used in a pejorative sense as such activity is not considered productive to the economy. Asset stripping is considered to be a problem in economies such as… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”