Alt-A

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Alt-A

Short for Alternative-A paper. Alt-A are loans that are considered riskier than prime loans but less risky than subprime loans. Generally made to individuals with a good credit score but some aspect of the loan (e.g. limited documentation or high loan-to-value ratio) makes the loan riskier than prime. Also see A paper, No docs.
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SimpleFi and other employer-based loan products join payday loans in the emergency and short-term lending markets, providing relief for employed borrowers needing quick low-doc funding.
Just as mortgage lenders got into trouble with no-doc, low-doc loans, there is a concern government student loan requirements aren't strict enough.
Many experts blame the securitization of low-doc loans--the very instruments Paul helped pioneer--as one of the causes of the Great Recession, but Paul doesn't agree.
This includes the information memorandum and high-level data relating to the asset pools underpinning the securities, such as the share of prime domestic full-doc and low-doc residential mortgages.
Since this is low-doc financing with no credit pulled or reported, most LeverageLines are available for drawing within two weeks.
You take an alt-A loan or low-doc or no-doc loan, and there is no documentation of the borrower's income--then you can't necessarily get full goals credit for any of the goals that are income-based.
Figure 4 shows a sharp increase in the share of low-doc loans in post-2004 Alt-A originations.
The mortgage industry's acceptance of risk in the form of low-doc no-doc and subprime housing loans, the securities industry's acceptance of the risk represented by the bundling of these loans into vast mortgage-backed debt obligations, along with their further acceptance of the risk represented by exotic, leveraged derivatives based on these same securities, has led to a meltdown of historic proportions.
Lending practices such as low-doc and no-doc loans (where the borrower certifies their own capacity to pay) and asset-based lending enable loans to be provided with the creditor making few or no independent enquiries into the borrower's ability to repay.
A sampling of more specific forms includes alien employment certification, LOW-DOC application, company profile, and Freedom of Information Act request.
If you need a little more--say, $20,000-$100,000--check into bank loans, credit lines from banks, the SBA Low-Doc program, strategic partners and other sources.
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