Subprime or sub-prime word of the year
The American Dialect Society voted “subprime” the word of the year. Sharing this dubious honor with "subprime" are previous years' Word of the Year winners, such as (2005) truthiness; (2004) red/blue/purple states; (2003) metrosexual; and (2000) chad.
In this, its 18th year of heralding sparkling new entrants into the public lexicon, American Dialecticians said "Subprime is an adjective used to describe a risky or less than ideal loan, mortgage, or investment. Subprime was also winner of a brand-new 2007 category for real estate words, a category which reflects the preoccupation of the press and public for the past year with a deepening mortgage crisis."
The Society also created a NEW CATEGORY: REAL ESTATE/MORTGAGE/LOAN WORDS—
These include :
Exploding ARM An Adjustable Rate Mortgage whose rates soon rise beyond a borrower’s ability
to pay.
Liar’s loan/liar loan Money borrowed from a financial institution under false pretenses,
especially in the form of a “stated income” or “no-doc” loan which can permit a borrower to
exaggerate income. 1
NINJA No Income, No Job or Assets. A poorly documented loan made to a high-risk borrower.
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Scratch and dent loan A loan or mortgage that has become a risky debt investment, especially
one secured with minimal documentation or made by a borrower who has missed payments.
