Final answer:
A loan that does not qualify to be purchased by the federal secondary mortgage market is generally referred to as a subprime loan or NINJA loan (No Income, No Job, or Assets loans).
Step-by-step explanation:
A loan that does not qualify to be purchased by the federal secondary mortgage market is generally referred to as a subprime loan.
Subprime loans are loans that have characteristics like low or zero down-payment, little scrutiny of the borrower's income, and sometimes low payments for the first year or two followed by much higher payments.
Financial institutions made some subprime loans in the mid-2000s, which were later dubbed NINJA loans (No Income, No Job, or Assets loans).