Liar Loan

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January 1, 1 6 min read Definitions

Liar Loan NINJA Loan No-Documentation Loan Stated Income Loan Mortgage Fraud Subprime Lending Housing Bubble Financial Crisis

A Liar Loan is a category of mortgages where borrowers are allowed to state their income and assets without providing any documentation to verify this information. These loans became notorious during the housing boom of the mid-2000s when many borrowers exaggerated their financial standing to qualify for larger loans.