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.
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