Subprime lending

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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 ?
As of June 30, 2013, Ocwen serviced a portfolio of approximately 768,439 non-prime loans with an aggregate unpaid principal balance of $115 billion and a portfolio of special servicing assets consisting of 271,118 loans with an aggregate unpaid principal balance of $58 billion.
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.
Apart from these, Ocwen bought certain mortgage-servicing rights (MSRs) related to non-prime loans from JPMorgan Chase Bank, N.
We normally see one in twenty of our survey respondents specialized in originating non-prime loans.
Franklin originated non-prime loans through its wholly-owned subsidiary, Tribeca Lending Corp.
National City's liquidating portfolios include non-prime loans that remain following the sale of First Franklin, broker-originated National Home Equity portfolios, the construction loans formerly originated by National City Mortgage, mortgages related to other non-continuing origination channels, and indirect automotive and recreation finance assets.
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.