Definition for : Non-conforming

A "non-conforming" loan is a loan (generally a Mortgage loan) for which the borrower did not meet all of the traditional lending criteria, and for instance was already highly indebted, or for which no independent check was made to ensure that the applicant was not lying with respect to his financial and family situations. The opposite is a "Conforming loan".

(See Chapter 22 Shares of the Vernimmen)

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