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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It's no coincidence that alt-A's growth at companies such as SouthStar is coming from states such as Florida, Texas and California, as well as cities like Atlanta, which Smith calls "a diverse international market." And, he notes, demand for alt-A loans is being driven by more than just immigrant or minority populations.

The 'emerged' market: the numbers make a compelling case for where industry growth will come from in the future. A segment of borrowers with the moniker "emerging markets" is the focus of many lenders today, and their needs are different from the cookie-cutter borrowers of the past