Beware the zombie bank and ninja home loan

Tuesday 24 March 2009

Article by Mozo

Those looking to compare home loans may do well to steer clear of ‘zombie banks’ and lenders offering ‘ninja loans’, the Sydney Morning Herald reports.

In a rundown of some of the funniest terms that have been borne out by the economic crisis, the paper has a particular like of the ‘zombie bank’, which has been used to describe those half-dead lenders that need to be kept alive with public funding.

"Instead of being left to suck the lifeblood out of the financial system, some argue that zombie banks should just be shot in the head," the paper reports.

Meanwhile, those looking to compare home loans should be wary of ninja loans, which are so called because they offer loans to people with No Income, No Jobs or Assets.

This type of reckless lending is considered the main cause of the current mess in the US housing market, although a number of prominent reports published recently have warned that Australia could be in for its own wave of repossessions and plummeting house prices.

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