What exactly is a NINJA Loan?
A NINJA loan is really a slang term for the loan extended to a debtor with little to no or no effort by the loan provider to validate the applicant’s power to repay. It represents “no income, no work, with no assets.” Whereas many loan providers need loan candidates to produce proof of a well balanced blast of earnings or adequate security, a NINJA loan ignores that verification process.
NINJA loans had been more typical before the 2008 crisis that is financial. Into the aftermath for the crisis, the U.S. government issued brand new laws to enhance standard financing methods over the credit market, including tightening certain requirements for giving loans. Continue reading →