Subprime lending

(redirected from Non-prime loans)

Subprime lending

Lending to individuals who have a bad credit history or relatively low income. A higher interest rate is charged for such loans because risk to the lender is higher. Excessive subprime lending is often pointed to as one of the major causes of the financial crisis of 2008-2009.
References in periodicals archive ?
Citadel is a residential mortgage loan origination and servicing company focused on non-prime loans.
4 million in non-prime loans and is an unrated private deal that was placed with investors by Nomura Holdings Inc.
Global Banking News-19 May 2010-Santander to offer non-prime loans for customers of Chrysler(C)2010 ENPublishing - http://www.
Most of the non-prime loans were packaged into bonds that received triple-A ratings from the rating agencies.
Additionally, Florida contains a disproportionate amount of non-prime loans, with 85% of loans being categorized as Alt-A or Subprime.
We normally see one in twenty of our survey respondents specialized in originating non-prime loans.
It incorporates newly tailored model segments to adapt to the unique portfolio characteristics of prime, Alt-A and non-prime loans and maintains market leading detection rates and low false positives on all portfolio types.
2 million of non-prime loans to Option One and the remaining prime production to a third party.
Our many years of experience in the real estate settlement services industry has led to an understanding that the processes and products needed to underwrite non-prime loans are unique," said Richard Hogendorf, group vice president of TransUnion Real Estate Service's Consumer Finance division.
Today, GMAC Mortgage is able to service multiple mortgage loan products, including first mortgages, HELOCs, unsecured consumer credit, non-prime loans and non-performing loans.