B-paper

B-paper

Home mortgages for consumers with poor credit or other disabilities that prevent them from obtaining the best possible interest rates,percentage of financing,or other terms.The promissory notes are generally at high rates of interest commensurate with the higher risk of default assumed by the lender.The B-paper industry was largely unregulated for many years, but has now come under increasing scrutiny and even class action litigation because of widespread predatory abuses. On the other hand, the industry is predominantly honest and does fill a void in the home mortgage market,enabling millions of responsible persons to enjoy the benefits of homeownership.

References in periodicals archive ?
Some B-paper wholesale lenders pay a quarter-point more for applications submitted electronically, says Lazzeri.
Jack French, chairman and chief executive officer, said, "While Plaza continues to restructure operations in its primary loan origination channels due to shrinking demand, we are continuing to expand our B-paper loan subsidiary, Option One Mortgage Corp.
Plaza also is doing B-paper loans through its Option One division, and Plaza Realty is working directly with real estate agents.
But he is not interested in diversifying into B-paper or home equity lending.