NINJA Loan
What is a NINJA Loan? A NINJA Loan (No Income, No Job, and No Assets Loan) is a term used to describe a loan that’s been extended to a borrower with little or no attempt by the lender to verify certain attributes that predict the applicant’s ability to repay. It is contrary to most conventional...
Loan Covenant
What is a Loan Covenant? Loan covenants are a series of small, independent agreements made between a debtor (borrower) and a creditor (lender). Loan covenants expressly outline behaviors that a borrower must – or must not – engage in. When a debtor borrows money from a creditor, the loan terms are expressly outlined in a...
Foreclosure
What is Foreclosure? When a homeowner stops paying on a loan used to purchase a home, the home is deemed to be in foreclosure. What this ultimately means is that the ownership of the home switches from the homeowner to the bank or lender that provided the loan. During the initial stages of foreclosure, the...
Net Charge-Off (NCO)
What is a Net Charge-Off (NCO)? A net charge-off (NCO) is the difference between the amount of gross charge-offs and any recoveries of delinquent debt. An NCO can be thought of as the debt owed to a company or organization that is not likely to be recovered. The debt is written off initially as a...
Opinion Letter
What is an Opinion Letter? An opinion letter, also called a legal opinion, is a letter issued by a legal counsel that facilitates a lender’s due diligence process in a transaction. The opinion letter is used in credit analysis to help determine whether to lend to a borrower or not. Lenders often require an opinion...
