no-doc loan

no-doc loan

Short for “no document”loan, it typically covers three situations in which borrowers cannot or will not provide the documentation typically necessary to evaluate their ability to pay back a loan: (1) a borrower who has regular self-employment income but no tax forms from an employer, (2) wealthy individuals with complex financial lives showing large tax losses every year but an amazing ability to live lavish lifestyles (also called no-ratio loans),and (3) wealthy people with substantial assets but who want maximum privacy and refuse to supply any documentation. All three groups are going to pay high interest rates as a result of their lack of documentation.

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The only no-doc loan should require 100 percent down," she says, laughing.
On another front, the SBA's Low Doc program will be eclipsed by its no-doc Loan Express program.
If someone asked us to do a no-doc loan, we told them no.
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.
MBS), Stevens recalls there was a time when the GSEs "couldn't get enough" of the no-doc loans that are now the subject of these suits.
The no-doc loans and the stated-income loans - those are a thing of the past," he said.
88) Fannie stopped acquiring low-doc or no-doc loans in 1990.
At certain times our members wondered why we weren't offering no-doc loans, but we stayed focused, and on purpose.
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.
In today's market, you can no longer count on non-traditional products like interest-only mortgages, adjustable rate mortgages, stated income or no-doc loans to help you enter the housing market.
With a mix of prime, nonprime, home equity, interest-only, low-doc and no-doc loans, it is important for GMACM to have delinquency and default management integrated into its core servicing system.