NINA loan

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From a coding system for classifying loans to be securitized, in which N indicated "no verification", I "income", and A "assets". Other letters used were S "stated by borrower, unverifed" and V "verified".


NINA loan (plural NINA loans)

  1. (finance) A mortgage loan to a borrower with no verified or stated income or assets.
    • 1991 December 22, “Alternative Financing Picks Up Popularity”, in Toledo Blade (Ohio)[1]:
      Low and no-documentation mortgages. Known as "NINAa" (no income, no asset verification) in the trade, these were readily available through national lenders like Citicorp Mortgage in the 1980s. Now they are primarily available through alternative brokers. Southwestern Mortgage, Inc. advertises the ultimate "no nothing" NINA loan for applicants who want to avoid paper hassles; No income verification, no tax returns, no pay stubs, no W-2 income tax forms, no established credit history needed, no Social security numbers, no U.S. immigration green card required.
    • 2012 May, Christopher L. Foote, Kristopher S. Gerardi, and Paul S. Willen, “Why Did So Many People Make So Many Ex Post Bad Decisions? The Causes of the Foreclosure Crisis”, in Atlanta Fed Working Papers, Working Paper 2012-7[2], page 19n:
      The NINA loan is the basis for the apocryphal “NINJA” loan that is often used as an example of excesses in the boom-era mortgage market. NINJA supposedly stood for “no-income, no job, no assets,” but no such loan ever existed. Also, the NINA code, which did exist, did not signify a loan to a borrower with no income. Rather, the code signified that the lender had no information about the borrower’s income.
  2. A mortgage loan to a borrower with no income or assets.

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