With the housing market collapse have come all sorts of new words such as Alt-A loans, ninja loans, subprime, that leave many of us confused. This article by Jack Rosenthal from the New York Times take a stab at explaining some of the most commonly heard terms.
By the way an alternate Alt-A loan is one in which borrowers have excellent credit scores but can’t document their income and assets. Lenders are becoming increasingly concerned that these may be the next set of loans to default.
