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.
A NINJA loan is a type of secured loan given to borrowers with no income, no job, and no assets. These loans carry high risk for lenders and were popular during the mid-2000s credit bubble, partly because lenders anticipated rising real estate values.
