I laughed out loud when I read this….
Nina loans?
The abbreviation stands for “No income, no assets.” It does not mean the loans went to people without either assets or income, only that the borrowers were not asked if they had either. I had known about “stated income” loans — also known as “liars’ loans” — in which the bank took a borrower’s word for how much he earned. But I had not realized you could borrow money without even being asked about your income.
Starting this month, Freddie won’t guarantee such loans, which seem to default more often than other loans.
If you don’t check to see if someone has any income or assets, the loan is more likely to default. Who would have thunk?