mortgage mill

A company that automatically approves mortgages, particularly to unqualified buyers.
Example Citations:
During the housing boom, lenders created mortgage mills and put people into overpriced homes with mortgages that were difficult to understand and even more difficult to maintain. They often didn't bother to verify incomes or an applicant's long-term ability to keep up with the mortgage payments.
—Michelle Singletary, " An easy fix: Lenders must put people first:," The Washington Post, October 17, 2010
The Great Recession was caused by reckless Wall Street pay and fraud, a breakdown in sound lending standards by Fannie Mae, Freddie Mac and mortgage mills like Countrywide, and a huge trade deficit with China and on oil.
—Peter Morici, " Outside View: The Decadence of Election 2010:," UPI, September 21, 2010
Earliest Citation:
FBI Special Agent Steven Carter told lenders that Federal investigators have been flooded with complaints about so-called "mortgage mill" operations that specialize in arranging fraudulent loans. ... He said that, since many of these new arrivals cannot qualify for a loan, they turn to a mortgage mill.
—"Mortgage Fraud High in Calif.," National Mortgage News, July 26, 1993
Notes: Related Words: Categories:

New words. 2013.

Look at other dictionaries:

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  • appraisal mill — n. An unscrupulous company that provides misleading or erroneous appraisals, particularly for real estate. Example Citations: Still, some experts say the system needs an overhaul, from the appraisal mills and mortgage mills that started the… …   New words

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  • jingle mail — n. The practice of abandoning one s house and mailing the keys back to the creditor because the mortgage is worth more than the house itself. jingle mailer n. Example Citations: Making it harder for people to discharge their credit card debts has …   New words

  • liar loan — n. A loan or mortgage provided without requiring documentation from the borrower. Example Citations: Last year almost forty per cent of subprime borrowers were able to get liar loans mortgages that borrowers can get simply by stating their income …   New words

  • ninja loan — n. A loan or mortgage given to a person who has no income, no job, and no assets. Also: NINJA loan. [From the phrase, No Income, No Job or Assets.] Example Citations: It s not as though the absurd excesses of the mortgage market were some big… …   New words

  • homedebtor — n. A homeowner with an extremely large mortgage, particularly one that he or she is unlikely to ever pay off. Example Citations: In these places, accepting a government bailout that pays them, say, 90 percent of the value of the house to keep… …   New words

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