where did the lenders find a record number of borrowers? Only by relaxing lending standards. In 2006, “NINJA” Ioans or “no income, no job, no assets” loans were common where the lender allowed borrowers to simply state their income and assets without requiring verification. Borrowers with bad credit were also welcomed with “subprime” mortgages that had higher interest rates. Of course, the effect of this imprudent lending is that, once housing prices started falling, mortgage defaults skyrocketed in 2007, triggering the financial collapse of 2007-2008.