American Banker has a great slideshow on catchphrases that evolved during the financial crisis. Check it out. Some of my favorites are:
Structured By Cows – “We rate every deal. It could be structured by cows and we would rate it,” said an S&P analyst discussing a questionable securitization that a colleague called “ridiculous.”
High Speed Swim Lane, or HSSL Countrywide’s way of describing the way they stripped QC of loans going to Fannie Mae and Freddie Mac.
Friends of Angelo Named for Countrywide’s CEO Angelo Mozilo in which government officials like Chris Dodd (ie Dodd-Frank) got better mortgage terms than they should have.
Close More University Subprime lender New Century (out of business) brought together mortgage brokers to encourage them to throw away any standards to bring more volume.
Jingle Mail When borrowers mailed their keys to the bank if they were hopelessly underwater.
Liar’s Loans Standard mortgage industry practice that encouraged borrowers to exaggerate their qualifications in order to get the loan.
Incredible and hard to conceive of now but this was common practice only a mere 5 years ago.
Tags: American Banker, Fannie Mae, Sub-Prime, Freddie Mac