The Real Causes Of The Great Recession

[Jarhead]

NINJA loan

Contents

• 1 English
  • 1.1 Alternative forms
  • 1.2 Etymology
  • 1.3 Noun
  • 1.4 Related terms
  • 1.5 See also

English

Wikipedia has an article on:
NINJA loan
Alternative forms

• ninja loan

Etymology

Coined by the American lending company HCL Finance from an approximate initialism of no income, no job, no assets.

Noun
NINJA loan (plural NINJA loans)

A subprime loan issued to borrowers with no job, income, or assets.  [quotations ▼

all fine and well.....but you are misinterpreting what it means...

It means that one did not need to prove
that the information they gave on the application was correct.

 

[mudwhistle]

Imo, the pertinent question is why do the Banks so want to get rid of the Volker rule?

I get it that they don't care for Obama vilifying them, and the dems have lost Wall St as a major funding source .... although Hill may well change that back to where it was before Obama. But, why is it worth hundreds of millions for Wall St to bankroll the gop on this? It's not like Wall St is suffering from overregulation stifling profits.

I can only offer you my opinion as I am not on the board of one of the major banks.....and not privy to their thinking...

I believe they were very much taken aback by the way the President and democratic congress put the entire blame squarely on the banks. The banks knew that the President and congress was well aware of what took place during the collapse...so they saw Volker as one who was assigned to the task to simply come up with a reason that blames the banks...be it true or not...and any solution would be supporting a fallacy.

Again, just my opinion.

The banks were responsible, NINJA loans were standard fare, they stuck a mirror in front of your mouth and as long as you fogged it up you got the loan.
Most of the problems were with gullible buyers and ruthless banks.

I believe you are not aware of what NINJA loans were.....so I will explain it to you.

They were no income, no employment verification loans....BUT...

The applications were STILL reviewed by an independent underwriter for approval based on what was on the application....in other words the following still had to be met..

1) The income asserted by the applicant must meet the requirements for the loan
2) Current employment/assets must meet the criteria
3) The LTV must make sense

So the only way a NINJA loan contributed to the problem was if, in fact the applicant LIED on the application about income and job status.

So it is the banks fault if the applicant lied?

Are you aware that the application has 4 places to sign and all signatures have the affidavit wording below them?

False NINJA laons were :

No Income ...............
No Jobs or Assets ..............

They wrere just exactly that and met those particular qualifications, hence the name!!

You are incorrect.....they were loans where income, assets and employment status the applicant listed on the application were not subject to verification.

But the applications ABSOLUTELY asked for income, assets and employment status...and the 4 places one would sign asserted under oath that the information was accurate to the best of their knowledge.

Just wanted to make sure you understood....those "victims" of the banks lied to get the loan.

Is that the same as a stated income loan, for people who work on commission, thus don't receive a steady paycheck?

 

[DrDoomNGloom]

NINJA loan

Contents

• 1 English
  • 1.1 Alternative forms
  • 1.2 Etymology
  • 1.3 Noun
  • 1.4 Related terms
  • 1.5 See also

English

Wikipedia has an article on:
NINJA loan
Alternative forms

• ninja loan

Etymology

Coined by the American lending company HCL Finance from an approximate initialism of no income, no job, no assets.

Noun
NINJA loan (plural NINJA loans)

A subprime loan issued to borrowers with no job, income, or assets.  [quotations ▼

all fine and well.....but you are misinterpreting what it means...

It means that one did not need to prove
that the information they gave on the application was correct.

Not a bit, you just refuse to admit you are wrong.


[Excerpt]
Tobias and Lindsay's NINJA loan

Tobias and Lindsay's mansion. (Netflix)
In the third episode, "Indian Takers," Lindsay and Tobias Funkë decide to make a new start (or, to use the spelling from Tobias' license plate, "ANUSTART") by buying a home together. They inform their realtor James Carr (Ed Helms) that they have no income coming in, no assets, no credit, no jobs, and no work ethic. No matter — Carr offers them a "NINJA" loan, available to borrowers in exactly that position ("No Income No Job and no Assets"). They end up with guest gatehouses and a mansion that looks like this:

NINJA loans are, shockingly, a real thing. Or at least they were, before the housing crash. But they're slightly different from the kind of loan that Tobias and Lindsay get. NINJA loans, also called NINA loans ("No Income No Assets") weren't loans made to people who actually had no income or no assets, necessarily; they were loans where the lender didn't ask for asset and income information from the borrower.

In March 2007, well before the proverbial fan had been hit, my colleague Steve Pearlstein had a great explanation of these products, and other crazy options available to borrowers pre-crisis, like "liar loans" (where, unlike NINA loans, income and asset information was requested but no documentation was required), "balloon mortgages" (where only interest has to be paid for 10 years, and then a big lump sum payment for the principal is due), and "piggyback loans" (where money borrowed in one mortgage is used as a down payment to secure another mortgage).

So why were banks making these loans to people? Weren't they obviously going to fail? The issue, as explained in Planet Money's great episode, "The Giant Pool of Money", is that the securities that banks turned these mortgages into actually performed really well. That's because housing prices kept rising, so you could always pay for previous mortgages using the equity that accrued to the house since the initial mortgage was made. Mike Francis, a former residential mortgage trader at Morgan Stanley, explained it to Planet Money this way:

It's obvious that they performed well, now, because their property kept increasing in value. And over time, they could continue to take cash out of it, if they needed to, to pay the bill. In other words, they could take out another loan from the bank, against the value of their house, which because of the bubble was now worth more than they bought it for.

These loans, called home equity lines of credit, became very popular in the early to mid 2000s partly because they were easy to get, but partly because people needed them to continue making their original mortgage payments. To pay off their debts, they went into more debt.

But even NINA loans involved checking borrowers' credit scores. And given that the entire series started with Lindsay and Tobias fleeing a hotel because they couldn't pay their bill, I somehow doubt their credit score would have been sufficient for a giant NINA loan even in the glory days of 2006. The foreclosure the Fünkes faced, at least, was pretty realistic.

[/Except]

 

[zeke]

Nobody forced the big five investment banks to do what they did; they were not subject to CRA or other regulations common to depository banks. In fact, they mainly bought and sold loans rather than originate them.

We had the envy of the world in terms of financing homes BEFORE Graham Leach was eliminated. Fannie Mae and Freddie Mac A paper loans were recognized as a safe secure investment. A1. True story.
Banks and real bankers controlled the mortgage money then. And bankers ain't gamblers. They are stodgy. They want security. They want good sound appraisals. They want A paper borrower qualifications.

And no banker that followed what they had always done got in trouble.

But the investment banks had wanted access to this huge pool of money for a long time. When they finally could enter the mortgage banking arena (they were stopped by law before) it was game on. What kind of weird ass mortgage products can we develop and sell both to borrowers and buyers on the secondary markets.

With all these new lenders and new mortgage products, the money flowed like the proverbial wine.
That cash flow gave up the derivative speculations that followed.

Then all those borrowers cut the cash flow off and said here is your house back I won't be making no more payments and the entire process collapsed.
The end.

 

[DrDoomNGloom]

You read in that excerpt where it states the lender does not "ask" for job income or asset information, not quite the same scenario where you want to claim the applicant lied......... which is a violation of the law and can incur fines or penalties.

Get your act straight, "not asking" is not the same as deliberately lying ...............

You only half ass comprehend what was going on ..................

 

[Jarhead]

NINJA loan

Contents

• 1 English
  • 1.1 Alternative forms
  • 1.2 Etymology
  • 1.3 Noun
  • 1.4 Related terms
  • 1.5 See also

English

Wikipedia has an article on:
NINJA loan
Alternative forms

• ninja loan

Etymology

Coined by the American lending company HCL Finance from an approximate initialism of no income, no job, no assets.

Noun
NINJA loan (plural NINJA loans)

A subprime loan issued to borrowers with no job, income, or assets.  [quotations ▼

all fine and well.....but you are misinterpreting what it means...

It means that one did not need to prove
that the information they gave on the application was correct.

Not a bit, you just refuse to admit you are wrong.


[Excerpt]
Tobias and Lindsay's NINJA loan

Tobias and Lindsay's mansion. (Netflix)
In the third episode, "Indian Takers," Lindsay and Tobias Funkë decide to make a new start (or, to use the spelling from Tobias' license plate, "ANUSTART") by buying a home together. They inform their realtor James Carr (Ed Helms) that they have no income coming in, no assets, no credit, no jobs, and no work ethic. No matter — Carr offers them a "NINJA" loan, available to borrowers in exactly that position ("No Income No Job and no Assets"). They end up with guest gatehouses and a mansion that looks like this:

NINJA loans are, shockingly, a real thing. Or at least they were, before the housing crash. But they're slightly different from the kind of loan that Tobias and Lindsay get. NINJA loans, also called NINA loans ("No Income No Assets") weren't loans made to people who actually had no income or no assets, necessarily; they were loans where the lender didn't ask for asset and income information from the borrower.

In March 2007, well before the proverbial fan had been hit, my colleague Steve Pearlstein had a great explanation of these products, and other crazy options available to borrowers pre-crisis, like "liar loans" (where, unlike NINA loans, income and asset information was requested but no documentation was required), "balloon mortgages" (where only interest has to be paid for 10 years, and then a big lump sum payment for the principal is due), and "piggyback loans" (where money borrowed in one mortgage is used as a down payment to secure another mortgage).

So why were banks making these loans to people? Weren't they obviously going to fail? The issue, as explained in Planet Money's great episode, "The Giant Pool of Money", is that the securities that banks turned these mortgages into actually performed really well. That's because housing prices kept rising, so you could always pay for previous mortgages using the equity that accrued to the house since the initial mortgage was made. Mike Francis, a former residential mortgage trader at Morgan Stanley, explained it to Planet Money this way:

It's obvious that they performed well, now, because their property kept increasing in value. And over time, they could continue to take cash out of it, if they needed to, to pay the bill. In other words, they could take out another loan from the bank, against the value of their house, which because of the bubble was now worth more than they bought it for.

These loans, called home equity lines of credit, became very popular in the early to mid 2000s partly because they were easy to get, but partly because people needed them to continue making their original mortgage payments. To pay off their debts, they went into more debt.

But even NINA loans involved checking borrowers' credit scores. And given that the entire series started with Lindsay and Tobias fleeing a hotel because they couldn't pay their bill, I somehow doubt their credit score would have been sufficient for a giant NINA loan even in the glory days of 2006. The foreclosure the Fünkes faced, at least, was pretty realistic.

[/Except]

I am not wrong. I have seen thousands of applications. The NINJA loan (actually was known as a NINA loan), was designed for those that collected non reported income......the 1004 still asked for your income and assets....but they were not subjected to verification. The information was given to the underwriter who made the decision base don what was ion the application.

Then it went further....and job verification was ALSOI tossed in....known as NINJA loans.

Sorry pal...I know what I am talking about. I have reviewed thousands of applications. They ALL ask for that information.

 

[zeke]

But the applications ABSOLUTELY asked for income, assets and employment status...and the 4 places one would sign asserted under oath that the information was accurate to the best of their knowledge.

Duh dude. That's why they were called "liars loans".

 

[Jarhead]

You read in that excerpt where it states the lender does not "ask" for job income or asset information, not quite the same scenario where you want to claim the applicant lied......... which is a violation of the law and can incur fines or penalties.

Get your act straight, "not asking" is not the same as deliberately lying ...............

You only half ass comprehend what was going on ..................

I read that excerpt.

It is inaccurate.

The 1004 has not changed in 40 years.

 

[DrDoomNGloom]

NINJA loan

Contents

• 1 English
  • 1.1 Alternative forms
  • 1.2 Etymology
  • 1.3 Noun
  • 1.4 Related terms
  • 1.5 See also

English

Wikipedia has an article on:
NINJA loan
Alternative forms

• ninja loan

Etymology

Coined by the American lending company HCL Finance from an approximate initialism of no income, no job, no assets.

Noun
NINJA loan (plural NINJA loans)

A subprime loan issued to borrowers with no job, income, or assets.  [quotations ▼

all fine and well.....but you are misinterpreting what it means...

It means that one did not need to prove
that the information they gave on the application was correct.

Not a bit, you just refuse to admit you are wrong.


[Excerpt]
Tobias and Lindsay's NINJA loan

Tobias and Lindsay's mansion. (Netflix)
In the third episode, "Indian Takers," Lindsay and Tobias Funkë decide to make a new start (or, to use the spelling from Tobias' license plate, "ANUSTART") by buying a home together. They inform their realtor James Carr (Ed Helms) that they have no income coming in, no assets, no credit, no jobs, and no work ethic. No matter — Carr offers them a "NINJA" loan, available to borrowers in exactly that position ("No Income No Job and no Assets"). They end up with guest gatehouses and a mansion that looks like this:

NINJA loans are, shockingly, a real thing. Or at least they were, before the housing crash. But they're slightly different from the kind of loan that Tobias and Lindsay get. NINJA loans, also called NINA loans ("No Income No Assets") weren't loans made to people who actually had no income or no assets, necessarily; they were loans where the lender didn't ask for asset and income information from the borrower.

In March 2007, well before the proverbial fan had been hit, my colleague Steve Pearlstein had a great explanation of these products, and other crazy options available to borrowers pre-crisis, like "liar loans" (where, unlike NINA loans, income and asset information was requested but no documentation was required), "balloon mortgages" (where only interest has to be paid for 10 years, and then a big lump sum payment for the principal is due), and "piggyback loans" (where money borrowed in one mortgage is used as a down payment to secure another mortgage).

So why were banks making these loans to people? Weren't they obviously going to fail? The issue, as explained in Planet Money's great episode, "The Giant Pool of Money", is that the securities that banks turned these mortgages into actually performed really well. That's because housing prices kept rising, so you could always pay for previous mortgages using the equity that accrued to the house since the initial mortgage was made. Mike Francis, a former residential mortgage trader at Morgan Stanley, explained it to Planet Money this way:

It's obvious that they performed well, now, because their property kept increasing in value. And over time, they could continue to take cash out of it, if they needed to, to pay the bill. In other words, they could take out another loan from the bank, against the value of their house, which because of the bubble was now worth more than they bought it for.

These loans, called home equity lines of credit, became very popular in the early to mid 2000s partly because they were easy to get, but partly because people needed them to continue making their original mortgage payments. To pay off their debts, they went into more debt.

But even NINA loans involved checking borrowers' credit scores. And given that the entire series started with Lindsay and Tobias fleeing a hotel because they couldn't pay their bill, I somehow doubt their credit score would have been sufficient for a giant NINA loan even in the glory days of 2006. The foreclosure the Fünkes faced, at least, was pretty realistic.

[/Except]

I am not wrong. I have seen thousands of applications. The NINJA loan (actually was known as a NINA loan), was designed for those that collected non reported income......the 1004 still asked for your income and assets....but they were not subjected to verification. The information was given to the underwriter who made the decision base don what was ion the application.

Then it went further....and job verification was ALSOI tossed in....known as NINJA loans.

Sorry pal...I know what I am talking about. I have reviewed thousands of applications. They ALL ask for that information.

No Sport, can't you read, a simple check of credit score was enough ......................

 

[zeke]

I saw "stated income and stated asset" loans based on LTV and credit score and appraisal.

 

[Jarhead]

But the applications ABSOLUTELY asked for income, assets and employment status...and the 4 places one would sign asserted under oath that the information was accurate to the best of their knowledge.

Duh dude. That's why they were called "liars loans".

Exactly...that's what I am saying...it opened the door for the borrower to lie on the 1004.....

For some reason, people are not aware that the NINA's and NINJA'S still required the information/.......it just wasn't subject to verification.

 

[DrDoomNGloom]

You read in that excerpt where it states the lender does not "ask" for job income or asset information, not quite the same scenario where you want to claim the applicant lied......... which is a violation of the law and can incur fines or penalties.

Get your act straight, "not asking" is not the same as deliberately lying ...............

You only half ass comprehend what was going on ..................

I read that excerpt.

It is inaccurate.

The 1004 has not changed in 40 years.

Right, IT is inaccurate not YOU ..................

You do have supporting links like mine, right??

 

[Jarhead]

NINJA loan

Contents

• 1 English
  • 1.1 Alternative forms
  • 1.2 Etymology
  • 1.3 Noun
  • 1.4 Related terms
  • 1.5 See also

English

Wikipedia has an article on:
NINJA loan
Alternative forms

• ninja loan

Etymology

Coined by the American lending company HCL Finance from an approximate initialism of no income, no job, no assets.

Noun
NINJA loan (plural NINJA loans)

A subprime loan issued to borrowers with no job, income, or assets.  [quotations ▼

all fine and well.....but you are misinterpreting what it means...

It means that one did not need to prove
that the information they gave on the application was correct.

Not a bit, you just refuse to admit you are wrong.


[Excerpt]
Tobias and Lindsay's NINJA loan

Tobias and Lindsay's mansion. (Netflix)
In the third episode, "Indian Takers," Lindsay and Tobias Funkë decide to make a new start (or, to use the spelling from Tobias' license plate, "ANUSTART") by buying a home together. They inform their realtor James Carr (Ed Helms) that they have no income coming in, no assets, no credit, no jobs, and no work ethic. No matter — Carr offers them a "NINJA" loan, available to borrowers in exactly that position ("No Income No Job and no Assets"). They end up with guest gatehouses and a mansion that looks like this:

NINJA loans are, shockingly, a real thing. Or at least they were, before the housing crash. But they're slightly different from the kind of loan that Tobias and Lindsay get. NINJA loans, also called NINA loans ("No Income No Assets") weren't loans made to people who actually had no income or no assets, necessarily; they were loans where the lender didn't ask for asset and income information from the borrower.

In March 2007, well before the proverbial fan had been hit, my colleague Steve Pearlstein had a great explanation of these products, and other crazy options available to borrowers pre-crisis, like "liar loans" (where, unlike NINA loans, income and asset information was requested but no documentation was required), "balloon mortgages" (where only interest has to be paid for 10 years, and then a big lump sum payment for the principal is due), and "piggyback loans" (where money borrowed in one mortgage is used as a down payment to secure another mortgage).

So why were banks making these loans to people? Weren't they obviously going to fail? The issue, as explained in Planet Money's great episode, "The Giant Pool of Money", is that the securities that banks turned these mortgages into actually performed really well. That's because housing prices kept rising, so you could always pay for previous mortgages using the equity that accrued to the house since the initial mortgage was made. Mike Francis, a former residential mortgage trader at Morgan Stanley, explained it to Planet Money this way:

It's obvious that they performed well, now, because their property kept increasing in value. And over time, they could continue to take cash out of it, if they needed to, to pay the bill. In other words, they could take out another loan from the bank, against the value of their house, which because of the bubble was now worth more than they bought it for.

These loans, called home equity lines of credit, became very popular in the early to mid 2000s partly because they were easy to get, but partly because people needed them to continue making their original mortgage payments. To pay off their debts, they went into more debt.

But even NINA loans involved checking borrowers' credit scores. And given that the entire series started with Lindsay and Tobias fleeing a hotel because they couldn't pay their bill, I somehow doubt their credit score would have been sufficient for a giant NINA loan even in the glory days of 2006. The foreclosure the Fünkes faced, at least, was pretty realistic.

[/Except]

I am not wrong. I have seen thousands of applications. The NINJA loan (actually was known as a NINA loan), was designed for those that collected non reported income......the 1004 still asked for your income and assets....but they were not subjected to verification. The information was given to the underwriter who made the decision base don what was ion the application.

Then it went further....and job verification was ALSOI tossed in....known as NINJA loans.

Sorry pal...I know what I am talking about. I have reviewed thousands of applications. They ALL ask for that information.

No Sport, can't you read, a simple check of credit score was enough ......................

Yes....sport.....exactly.....all they did was check your credit score.....they did not verify the OTHER information you offered. They took your word for it.

The author of what you posted is wrong. What I am saying is fact...based on experience.

 

[zeke]

[QUOTE="Jarhead, post: 10581340, member: 22181"]The 1004 has not changed in 40 years.[/QUOTE]



You want me to call you a liar like you did me? It's a fucking "1003" Residential Mortgage Loan Application"
You looked at thousands of them eh? Sure you did.

 

[zeke]

The 1004 has not changed in 40 years.

Except when it was the 1003. Right?

 

[DrDoomNGloom]

[QUOTE="Jarhead, post: 10581340, member: 22181"]The 1004 has not changed in 40 years.

You want me to call you a liar like you did me? It's a fucking "1003" Residential Mortgage Loan Application"
You looked at thousands of them eh? Sure you did.[/QUOTE]


He is so full of SHIT, his eyes are brown .............

All of our verifiable links are wrong and dick sucker there is the fucking authority ................

 

[Jarhead]

You read in that excerpt where it states the lender does not "ask" for job income or asset information, not quite the same scenario where you want to claim the applicant lied......... which is a violation of the law and can incur fines or penalties.

Get your act straight, "not asking" is not the same as deliberately lying ...............

You only half ass comprehend what was going on ..................

I read that excerpt.

It is inaccurate.

The 1004 has not changed in 40 years.

Right, IT is inaccurate not YOU ..................

You do have supporting links like mine, right??

Nope.

You want to be right...go ahead. Im all for it.

But I DO Know underwriting....and how an underwriter is insured...and what an underwriter MUST use to make a loan decision for that insurance to be applicable in an E and O situation.

But please...believe what you want. After all, the internet doesn't lie.

 

[Jarhead]

The 1004 has not changed in 40 years.

Except when it was the 1003. Right?

lol.....typo....Shit happens.

 

[LogikAndReazon]

20% down , good credit, income verification and employment check.
No exceptions. Problem solved.

 

[Jarhead]

[QUO................[/QUOTE]
Hope you feel better.....

As for the 1004/1003 situation......I hit the 4 every time...even now and had to backtrack it....but whatever...

The internet doesn't lie.

Zeke doesn't like me...I get it...but he knows dam well I am correct