The American Dialect Society chose the word “subprime” as the 2007 Word of the Year at its annual convention Friday.

Members of the society chose “subprime”, an adjective that means "a risky or less than ideal loan, mortgage or investment" because of the public's concern for a "deepening mortgage crisis," according to a statement released by the group.

The society also added "real estate words" to its 2007 list of categories. Besides subprime, they were:

exploding ARM An Adjustable Rate Mortgage whose rates soon rise beyond a borrower’s ability to pay.

liar’s loan/liar loan Money borrowed from a financial institution under false pretenses, especially in the form of a “stated income” or “no-doc” loan which can permit a borrower to exaggerate income.

NINJA No Income, No Job or Assets. A poorly documented loan made to a high-risk borrower.

scratch and dent loan A loan or mortgage that has become a risky debt investment, especially one secured with minimal documentation or made by a borrower who has missed payments.