Liar's Loan


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Liar's Loan

A loan made to a person who has not been truthful about some aspect of the loan application. For example, if the borrower overstates his/her income, he/she is said to take out a liar's loan. In most jurisdictions, it is a crime to make false statements on a loan application.
References in periodicals archive ?
Some very specific causes were behind the meltdown (mortgage industry speculation, liar's loans, credit default swaps and collateral debt obligations to list a few), but the report asserts that the crisis was "built on longer-term structural weaknesses in the global economy.