What exactly is a NINJA Loan?

A NINJA loan is really a slang term for a loan extended up to a debtor, with little to no or no effort by the loan provider to confirm the applicant’s capacity to repay. It is short for “no earnings, no working work with no assets.” A NINJA loan ignores that verification process whereas most lenders require loan applicants to provide evidence of a stable stream of income or sufficient collateral.

NINJA loans were more http://www.speedyloan.net/reviews/maxlend/ common ahead of the 2008 economic crisis. The U.S. government issued new regulations to improve standard lending practices across the credit market, which included tightening the requirements for granting loans in the aftermath of the crisis. Only at that point, NINJA loans are unusual, if you don’t extinct.Read More