Timeline: Progression away from Subprime Financial Services Arms

“NINJA” mortgage: NINJA is short for “Zero Money, No Job, with no Assets.” NINJA mortgages was basically commonly referenced while the a feature regarding subprime home loan credit prior to the fresh new financial crisis. So you’re able to qualify for these types of funds, a debtor need to meet a credit history endurance place by lender no a lot more confirmation of money or assets. NINJA funds typically is good “teaser” rate you to after changes to the next adjustable rate reflecting the latest root borrowing risk of brand new borrower.

Beginning in many years immediately following new economic crisis, rules for instance the Consumer Safety Operate and Dodd-Honest Wall Highway Reform composed more strict conditions having meeting borrower information, thereby moving NINJA finance nearly into extinction

Zero deposit financial: A home loan that will not want individuals and also make a straight down commission (or requires an extremely quick downpayment). Continue Reading