NINA loan

NINA loan

Acronym for No Income No Assets. Loans made without any supporting documentation for income or assets. Also see No docs.
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With the NINA loan, borrowers do not have to state their income.
Julie Davis, vice president of corporate communications for Charlotte, North Carolina-based Bank of America, reports that the bank's mortgage company did not offer a NINA loan specifically, but it did offer loans with 80 percent less paperwork.
Several of them involved identity theft; false HUD-1 documents reporting earnest money and down payments that were never made; false claims that the named borrower intended to live in the property; credit reports that failed to show significant purchases made by the borrower about the time of the mortgage; filing for a NINA loan through a straw borrower who was unemployed; and even falsification of the age and race of the borrower.
United Guaranty Corporation, a mortgage insurer based in Greensboro, North Carolina, reports that for a period of 2 3/4 years--from January 2001 to the end of September 2003--the default rate for NINA loans that it insures was 5.
For example, in 2001, when the number of NINA loans began to be a significant part of United Guaranty's low-doc business, delinquencies were running at 9.
NINA loans, by contrast, require that the borrower state the name and address of the employer, but no income is stated.
There are three no-income loans: no-ratio, no-income (NRNIs), where the employer is stated and sometimes verified; NINAs; and no-doc loans, which are NINA loans where no employer or employer's address is identified.
One cannot generalize about all NINA loans from the experience tracked by mortgage insurance companies, because insured loans, by definition, involve loans with 80 percent or more LTV.
However, after United Guaranty reviewed the performance of its no-ratio and NINA loans, it found "nowhere near as strong a correlation" as can be found in the general loan portfolio.
The performance of NINA loans with a 740 FICO score was not much better than it was for NINA loans with a 690 credit score, Smith says.
Looking at loans originated from January to September 2003, 15 percent of the NINA loans approved by lenders and insured by United Guaranty were for self-employed borrowers.