mortgage mill
n. A company that automatically approves mortgages, particularly to unqualified buyers.
During the housing boom, lenders created mortgage mills and put people into overpriced homes with mortgages that were difficult to understand and even more difficult to maintain. They often didn't bother to verify incomes or an applicant's long-term ability to keep up with the mortgage payments.
—Michelle Singletary, “An easy fix: Lenders must put people first,” The Washington Post, October 17, 2010
The Great Recession was caused by reckless Wall Street pay and fraud, a breakdown in sound lending standards by Fannie Mae, Freddie Mac and mortgage mills like Countrywide, and a huge trade deficit with China and on oil.
—Peter Morici, “Outside View: The Decadence of Election 2010,” UPI, September 21, 2010
1993 (earliest)
FBI Special Agent Steven Carter told lenders that Federal investigators have been flooded with complaints about so-called "mortgage mill" operations that specialize in arranging fraudulent loans. … He said that, since many of these new arrivals cannot qualify for a loan, they turn to a mortgage mill.
—“Mortgage Fraud High in Calif.,” National Mortgage News, July 26, 1993