Subprime lending

(redirected from Nonprime mortgage)

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 ?
Morningstar lowered its outstanding residential nonprime mortgage servicer and residential mortgage special servicer rankings for Ocwen Loan Servicing, LLC to 'MOR RS2' from 'MOR RS1.
We haven't come across inappropriate lending" in the nonprime mortgage market this year, says Beverley Budsworth, managing director of the Debt Advisor, which counsels consumers on debt issues.
Most nonprime mortgage loans were made to homebuyers with weak credit histories, minimal down payments, low income-to-loan ratios, or other deficiencies that prevented them from qualifying for a prime loan.
he boom in nonprime mortgage lending that occurred in the United States between 2004 and 2006 was quickly followed by rapid increases in the rate of delinquencies and foreclosures on these loans.
Articles in The Village Voice likewise have drawn attention to how current New York State Attorney General Andrew Cuomo, as Secretary of HUD between 1997-2001, actively pushed Fannie Mae and Freddie Mac into backing the enormous expansion of the nonprime mortgage market.
Designed to offer the nonprime mortgage market "more guidance and direction," the new publication focuses on four areas of importance for the nonprime mortgage market, including compliance, the correspondent market, technology and the professionals who influence developments in the sector.
nonprime mortgage sector,'' GM said in a press release.
As GAO reported to Congress in July 2009, the number of nonprime mortgage originations (including subprime and Alt-A loans) grew rapidly from 2000 through 2006, a period during which average house prices appreciated dramatically.
March 18-21 MBA National Nonprime Mortgage Networking Conference,
said, "First NLC is one of the premier nonprime mortgage financing organizations in the United States.
Although severe illiquidity in the nonprime mortgage market placed increasing pressure on asset valuations, aggressive measures undertaken to reduce ResCap's nonprime exposure rendered the company less vulnerable in the second quarter to continued weakness in the market.
A leading nonprime servicer, Option One also services and sub-services more than $70 billion of nonprime mortgage loans.