low-doc loan en · NOUN
Pronunciation
- (Australia) audio
Etymology
From low + doc + loan.
Meanings
-
(Australia, US) A loan or mortgage where the borrower provides only limited proof of their income.
This kind of “no-doc loan” and its cousin, the “low-doc loan,” became quite prevalent. By 2006, low-doc loans accounted for more than one-third of all subprime mortgage originations.
2011, Robert W. Kolb, The Financial Crisis of Our Time, page 56:In a no-doc or low-doc loan, the lender doesn′t require you to bring proof of your income, but you will usually have to pay a higher interest rate or extra fees to get the loan. Lenders generally charge more for no-doc/low-doc loans.
2007, Barry Leonard, Consumer Handbook on Adjustable-Rate Mortgages, page 9:2006, The Bulletin, Issues 6536-6544, page 61, “You can see it here in mortgages. Low-doc loans used to carry at least 1% or more of risk premium. As everybody [piled] in, that has been driven down to half a percent. These people do not have a verifiable income, and yet you can only expect them to be charged half a percent more on the interest rate.”
Forms
| Spelling | Features | Labels | Source |
|---|---|---|---|
| low-doc loans | Number=Plur | lexicographic | |
| low doc loan | alternative | lexicographic |