The Real Causes Of The Great Recession

[Dad2three]

NINJA loan

Contents

• 1 English
  • 1.1 Alternative forms
  • 1.2 Etymology
  • 1.3 Noun
  • 1.4 Related terms
  • 1.5 See also

English

Wikipedia has an article on:
NINJA loan
Alternative forms

• ninja loan

Etymology

Coined by the American lending company HCL Finance from an approximate initialism of no income, no job, no assets.

Noun
NINJA loan (plural NINJA loans)

A subprime loan issued to borrowers with no job, income, or assets.  [quotations ▼

all fine and well.....but you are misinterpreting what it means...

It means that one did not need to prove
that the information they gave on the application was correct.

The stuff mortgage brokers could care less about?


JPMorgan CEO Jamie Dimon, who told the FCIC: “In mortgage underwriting, somehow we just missed, you know, that home prices don’t go up forever and that it’s not sufficient to have stated income.”

 

[Dad2three]

But the applications ABSOLUTELY asked for income, assets and employment status...and the 4 places one would sign asserted under oath that the information was accurate to the best of their knowledge.

Duh dude. That's why they were called "liars loans".

Exactly...that's what I am saying...it opened the door for the borrower to lie on the 1004.....

For some reason, people are not aware that the NINA's and NINJA'S still required the information/.......it just wasn't subject to verification.

Which Gov't policy didn't require 'verification' again?



It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it. More than 84 percent of the sub-prime mortgages in 2006 were issued by private lending. These private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. Out of the top 25 subprime lenders in 2006, only one was subject to the usual mortgage laws and regulations.

The nonbank underwriters made more than 12 million subprime mortgages with a value of nearly $2 trillion. The lenders who made these were exempt from federal regulations.


Lest We Forget Why We Had A Financial Crisis - Forbes

 

[Dad2three]

You read in that excerpt where it states the lender does not "ask" for job income or asset information, not quite the same scenario where you want to claim the applicant lied......... which is a violation of the law and can incur fines or penalties.

Get your act straight, "not asking" is not the same as deliberately lying ...............

You only half ass comprehend what was going on ..................

I read that excerpt.

It is inaccurate.

The 1004 has not changed in 40 years.

Right, IT is inaccurate not YOU ..................

You do have supporting links like mine, right??

Nope.

You want to be right...go ahead. Im all for it.

But I DO Know underwriting....and how an underwriter is insured...and what an underwriter MUST use to make a loan decision for that insurance to be applicable in an E and O situation.

But please...believe what you want. After all, the internet doesn't lie.

Choice between a right winger lying versus sourced articles, I'll take the sourced articles, lol

 

[Dad2three]

The 1004 has not changed in 40 years.

Except when it was the 1003. Right?

lol.....typo....Shit happens.

TYPO??? LOL

post 227

"the 1004 still asked for your income and assets."

The Real Causes Of The Great Recession Page 23 US Message Board - Political Discussion Forum


post 229


"The 1004 has not changed in 40 years."

The Real Causes Of The Great Recession Page 23 US Message Board - Political Discussion Forum


post 232

"it opened the door for the borrower to lie on the 1004"

The Real Causes Of The Great Recession Page 24 US Message Board - Political Discussion Forum



lol

 

[Dad2three]

20% down , good credit, income verification and employment check.
No exceptions. Problem solved.

REGULATORS BACK ON THE BEAT UNDER OBAMA. Problem solved

Some of the best performing loans? HINT VA NO DOWN LOANS, EVEN DURING DUBYA'S BUBBLE!
\
Weird the Banksters created a MARKET for subprime loans that they were able to securtize and SELL to investors versus holding them, the way they traditionally did right?

 

[Dad2three]

Unfair to banks, "discriminatory" to certain borrowers. As loans should be.

Loans that were under government regulation did better than private loans, especially if they were regulated by the "Community Reinvestment Act."

 

[zeke]

It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it. More than 84 percent of the sub-prime mortgages in 2006 were issued by private lending. These private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. Out of the top 25 subprime lenders in 2006, only one was subject to the usual mortgage laws and regulations.

Hot damn, sounds just like my personal experience.

But I really don't think a lot of these folks have ANY idea as to how much money was being made in this sub prime market and how that greed factor influenced EVERY single decision that was made by upper echelon mortgage industry executives.

No one wanted to be the guy that stopped the marygoround. When you've been making the kind of money these guys were making, well, you never want that to stop. You find you can justify about anything if the commission check is big enough.

Loan officers with a HS education making 250k a year. In the midwest. Managers making 400k. Top producers making millions a year in the high end markets.

And on Wall street. Hell, who knows what those guys made. But it was fucking crazy money.

Greed. Plain ole greed and corruption.

But I am still mad at Clinton.

 

[Dad2three]

Unfair to banks, "discriminatory" to certain borrowers. As loans should be.

That whole idea seems to have gone over the heads of many.....

The banks were told to show "fair lending" practices and offer more loans to minorities.....

It was not the banks' fault that the minorities had lower incomes and lower credit ratings....that was/is a social issue. THAT issue should have first been addressed.

But any politician that brought that up was labeled a racist.

"The banks were told to show "fair lending" practices and offer more loans to minorities....."


NOTHING to do with Dubya's subprime bubble, where he ignored regulator warnings and cheered on the Banksters. Just like Ronnie did with the S&L crisis and Harding/Hoover did in the 1920's. Coincidence they create these bubble that collapse?




The onset of the recent financial crisis in late 2007 created an intellectual crisis for conservatives, who had been touting for decades the benefits of a hands-off approach to financial market regulation. As the crisis quickly spiraled out of control, it quickly became apparent that the massive credit bubble of the mid-2000s, followed by the inevitable bust that culminated with the financial markets freeze in the fall of 2008, occurred predominantly among those parts of the financial system that were least regulated, or where regulations existed but were largely unenforced.

Predictably, many conservatives sought to blame the bogeymen they always blamed. In March of 2008, Sen. Jon Kyl (R-AZ) blamed loans “to the minorities, to the poor, to the young” as causing foreclosures. Not long after, conservative commentator Michele Malkin went so far as to claim that illegal immigration caused the crisis.

This tendency to shift blame to minorities and poor people for the financial crisis soon developed into a well-honed narrative on the right. Swiftly and repeatedly many conservatives blamed affordable housing policies


Politics Most Blatant Center for American Progress

 

[Dad2three]

Different lending standards are needed for social justice.
The politicians that advocate for that should be imprisoned.

YEAH, that's what caused Dubya/GOP to ALLOW the Banksters to run a PONZI scheme on the world, lol

 

[Meathead]

Recessions are are invariably due to the economics of socialist government. Greece is the best example.

 

[Dad2three]

It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it. More than 84 percent of the sub-prime mortgages in 2006 were issued by private lending. These private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. Out of the top 25 subprime lenders in 2006, only one was subject to the usual mortgage laws and regulations.

Hot damn, sounds just like my personal experience.

But I really don't think a lot of these folks have ANY idea as to how much money was being made in this sub prime market and how that greed factor influenced EVERY single decision that was made by upper echelon mortgage industry executives.

No one wanted to be the guy that stopped the marygoround. When you've been making the kind of money these guys were making, well, you never want that to stop. You find you can justify about anything if the commission check is big enough.

Loan officers with a HS education making 250k a year. In the midwest. Managers making 400k. Top producers making millions a year in the high end markets.

And on Wall street. Hell, who knows what those guys made. But it was fucking crazy money.

Greed. Plain ole greed and corruption.

But I am still mad at Clinton.

Clinton? The 'repeal' of G/S had no effect on Dubya's regulator problem OR the Banksters creating ANOTHER credit bubble like Reagan S&L or Harding/Coolidge's great depression.

 

[Dad2three]

Recessions are are invariably due to the economics of socialist government. Greece is the best example.

Yep, Dubya proved that *shaking head*

 

[zeke]

Clinton? The 'repeal' of G/S had no effect on Dubya's regulator problem OR the Banksters creating ANOTHER credit bubble like Reagan S&L or Harding/Coolidge's great depression.

I understand that. However, you can't deny that keeping investment banks out of the mortgage lending business, by law, kept the gamblers at bay in terms of mortgage lending.

Clinton opened the door to the proverbial wolves. There was a reason that law was put into place and there was a reason the Republicans had fought for its repeal for years and years.

Now we know why. It had been a very successful law.

 

[Dad2three]

What caused the financial crisis? The Big Lie goes viral

One group has been especially vocal about shaping a new narrative of the credit crisis and economic collapse: those whose bad judgment and failed philosophy helped cause the crisis.

Rather than admit the error of their ways — Repent! — these people are engaged in an active campaign to rewrite history. They are not, of course, exonerated in doing so. And beyond that, they damage the process of repairing what was broken. They muddy the waters when it comes to holding guilty parties responsible. They prevent measures from being put into place to prevent another crisis.

Here is the surprising takeaway: They are winning. Thanks to the endless repetition of the Big Lie.

A Big Lie is so colossal that no one would believe that someone could have the impudence to distort the truth so infamously. There are many examples: Claims that Earth is not warming, or that evolution is not the best thesis we have for how humans developed. Those opposed to stimulus spending have gone so far as to claim that the infrastructure of the United States is just fine, Grade A (not D, as the we discussed last month), and needs little repair.

Wall Street has its own version: Its Big Lie is that banks and investment houses are merely victims of the crash. You see, the entire boom and bust was caused by misguided government policies. It was not irresponsible lending or derivative or excess leverage or misguided compensation packages, but rather long-standing housing policies that were at fault.

Indeed, the arguments these folks make fail to withstand even casual scrutiny. But that has not stoppedpeople who should know better from repeating them.
What caused the financial crisis The Big Lie goes viral - The Washington Post


Examining the big lie: How the facts of the economic crisis stack up

When an economy booms or busts, money gets misspent, assets rise in prices, fortunes are made. Out of all that comes a set of easy-to-discern facts.

Here are key things we know based on data. Together, they present a series of tough hurdles for the big lie proponents.

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.

A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative.


Nonbank mortgage underwriting exploded from 2001 to 2007, along with the private label securitization market, which eclipsed Fannie and Freddie during the boom

•Private lenders not subject to congressional regulations collapsed lending standards. Taking up that extra share were nonbanks selling mortgages elsewhere, not to the GSEs. Conforming mortgages had rules that were less profitable than the newfangled loans. Private securitizers — competitors of Fannie and Freddie — grew from 10 percent of the market in 2002 to nearly 40 percent in 2006. As a percentage of all mortgage-backed securities, private securitization grew from 23 percent in 2003 to 56 percent in 2006

 

[DrDoomNGloom]

Different lending standards are needed for social justice.
The politicians that advocate for that should be imprisoned.

YEAH, that's what caused Dubya/GOP to ALLOW the Banksters to run a PONZI scheme on the world, lol

No what caused it were ignorant buyers who wanted to live "above their means" spurred on by idiots like you who want to blame the RW.

If your black / white / yellow / tan / purple ass don't have a job and no assets or income, what the fuck make's you think you qualify as a home owner??

You can take all the hopes and dreams of being like the rest of the reasonable and prudent people that do, but until you get up off your lazy ass, learn to live within your means and learn how to prioritize that will never become reality.

It ain't the politicians promising things they can't deliver, it is the lazy societal leeches that think they deserve what the hard working in society have without the fucking work!!

 

[Dad2three]

Clinton? The 'repeal' of G/S had no effect on Dubya's regulator problem OR the Banksters creating ANOTHER credit bubble like Reagan S&L or Harding/Coolidge's great depression.

I understand that. However, you can't deny that keeping investment banks out of the mortgage lending business, by law, kept the gamblers at bay in terms of mortgage lending.

Clinton opened the door to the proverbial wolves. There was a reason that law was put into place and there was a reason the Republicans had fought for its repeal for years and years.

Now we know why. It had been a very successful law.

Right wingers MUST love this one, from Ayn Rand Institute, BUT TRUE:


There is zero evidence this change unleashed the financial crisis. If you tally the institutions that ran into severe problems in 2008-09, the list includes Bear Stearns, Lehman Brothers, Merrill Lynch, AIG, and Fannie Mae and Freddie Mac, none of which would have come under Glass-Steagall’s restrictions. Even President Obama has recently acknowledged that “there is not evidence that having Glass-Steagall in place would somehow change the dynamic.”

As for the FDIC-insured commercial banks that ran into trouble, the record is also clear: what got them into trouble were not activities restricted by Glass-Steagall. Their problems arose from investments in residential mortgages and residential mortgage-backed securities—investments they had always been free to engage in

Why The Glass-Steagall Myth Persists - Forbes


THIS WAS A REGULATOR PROBLEM, BOTH WITH DUBYA AND GREENSPAN'S 'BELIEF' THAT MARKETS SELF CORRECT, FORGETTING WHAT HAPPENED UNDER RONNIE'S S&L CRISIS OR HARDING/COOLIDGE'S MELTDOWN

 

[Dad2three]

Different lending standards are needed for social justice.
The politicians that advocate for that should be imprisoned.

YEAH, that's what caused Dubya/GOP to ALLOW the Banksters to run a PONZI scheme on the world, lol

No what caused it were ignorant buyers who wanted to live "above their means" spurred on by idiots like you who want to blame the RW.

If your black / white / yellow / tan / purple ass don't have a job and no assets or income, what the fuck make's you think you qualify as a home owner??

You can take all the hopes and dreams of being like the rest of the reasonable and prudent people that do, but until you get up off your lazy ass, learn to live within your means and learn how to prioritize that will never become reality.

It ain't the politicians promising things they can't deliver, it is the lazy societal leeches that think they deserve what the hard working in society have without the fucking work!!

"If your black / white / yellow / tan / purple ass don't have a job and no assets or income, what the fuck make's you think you qualify as a home owner??"


BANKSTERS AND DUBYA AND HIS REGULATORS???

Bush's documented policies and statements in timeframe leading up to the start of the Bush Mortgage Bubble include (but not limited to)

Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals
Lowering Invesntment banks capital requirements, Net Capital rule
Reversing the Clinton rule that restricted GSEs purchases of subprime loans
Lowering down payment requirements to 0%
Forcing GSEs to spend an additional 440 billion in the secondary markets
Giving away 40,000 free down payments
PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING


But the biggest policy was regulators not enforcing lending standards.

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[DrDoomNGloom]

Clinton? The 'repeal' of G/S had no effect on Dubya's regulator problem OR the Banksters creating ANOTHER credit bubble like Reagan S&L or Harding/Coolidge's great depression.

I understand that. However, you can't deny that keeping investment banks out of the mortgage lending business, by law, kept the gamblers at bay in terms of mortgage lending.

Clinton opened the door to the proverbial wolves. There was a reason that law was put into place and there was a reason the Republicans had fought for its repeal for years and years.

Now we know why. It had been a very successful law.

Right wingers MUST love this one, from Ayn Rand Institute, BUT TRUE:


There is zero evidence this change unleashed the financial crisis. If you tally the institutions that ran into severe problems in 2008-09, the list includes Bear Stearns, Lehman Brothers, Merrill Lynch, AIG, and Fannie Mae and Freddie Mac, none of which would have come under Glass-Steagall’s restrictions. Even President Obama has recently acknowledged that “there is not evidence that having Glass-Steagall in place would somehow change the dynamic.”

As for the FDIC-insured commercial banks that ran into trouble, the record is also clear: what got them into trouble were not activities restricted by Glass-Steagall. Their problems arose from investments in residential mortgages and residential mortgage-backed securities—investments they had always been free to engage in

Why The Glass-Steagall Myth Persists - Forbes


THIS WAS A REGULATOR PROBLEM, BOTH WITH DUBYA AND GREENSPAN'S 'BELIEF' THAT MARKETS SELF CORRECT, FORGETTING WHAT HAPPENED UNDER RONNIE'S S&L CRISIS OR HARDING/COOLIDGE'S MELTDOWN

No, there was a problem in the securities that were being bundled and sold.

The largest issue was in the bond rating system, it was AIG's fault and AIG was too big to fail under the Obamma administration.

For an industry insider you seem to be dumb as shit ..................

 

[DrDoomNGloom]

Different lending standards are needed for social justice.
The politicians that advocate for that should be imprisoned.

YEAH, that's what caused Dubya/GOP to ALLOW the Banksters to run a PONZI scheme on the world, lol

No what caused it were ignorant buyers who wanted to live "above their means" spurred on by idiots like you who want to blame the RW.

If your black / white / yellow / tan / purple ass don't have a job and no assets or income, what the fuck make's you think you qualify as a home owner??

You can take all the hopes and dreams of being like the rest of the reasonable and prudent people that do, but until you get up off your lazy ass, learn to live within your means and learn how to prioritize that will never become reality.

It ain't the politicians promising things they can't deliver, it is the lazy societal leeches that think they deserve what the hard working in society have without the fucking work!!

"If your black / white / yellow / tan / purple ass don't have a job and no assets or income, what the fuck make's you think you qualify as a home owner??"


BANKSTERS AND DUBYA AND HIS REGULATORS???

Bush's documented policies and statements in timeframe leading up to the start of the Bush Mortgage Bubble include (but not limited to)

Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals
Lowering Invesntment banks capital requirements, Net Capital rule
Reversing the Clinton rule that restricted GSEs purchases of subprime loans
Lowering down payment requirements to 0%
Forcing GSEs to spend an additional 440 billion in the secondary markets
Giving away 40,000 free down payments
PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING


But the biggest policy was regulators not enforcing lending standards.

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

Wake up and smell the coffee, that link is from another discussion here on USMB, get some fucking facts and grow the fuck up!!

 

[Dad2three]

Different lending standards are needed for social justice.
The politicians that advocate for that should be imprisoned.

YEAH, that's what caused Dubya/GOP to ALLOW the Banksters to run a PONZI scheme on the world, lol

No what caused it were ignorant buyers who wanted to live "above their means" spurred on by idiots like you who want to blame the RW.

If your black / white / yellow / tan / purple ass don't have a job and no assets or income, what the fuck make's you think you qualify as a home owner??

You can take all the hopes and dreams of being like the rest of the reasonable and prudent people that do, but until you get up off your lazy ass, learn to live within your means and learn how to prioritize that will never become reality.

It ain't the politicians promising things they can't deliver, it is the lazy societal leeches that think they deserve what the hard working in society have without the fucking work!!

Jun 16, 2005 -

The worldwide rise in house prices is the biggest bubble in history. Prepare for the economic pain when it pops




The global housing boom In come the waves The Economist