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 ?
The Minister for Finance Michael Noonan has confirmed that 56% of the home sub-prime mortgage book is in arrears of 90 days or more," he said.
Meanwhile, sub-prime auto financing (auto loans to car buyers who pay more for their financing because they are more likely to default on payments) is rising.
A report yesterday from industry group the Mortgage Bankers Association showed the mortgage crisis has switched from shady sub-prime loans to traditional fixed-rate deals.
The election of President Barack Obama and subsequent revelations about the extent to which unregulated credit-default swaps and mortgage-backed securities backed by sub-prime loans played a pivotal role in the economic devastation, have tempered but not silenced the criticism.
Global Banking News-12 May 2009-Goldman to pay USD60m to settle sub-prime probe(C)2009 ENPublishing - http://www.
Referring to the US sub-prime mortgage lending which triggered the credit crunch, he joked: "Sub-prime?
S&P's data showed that those sub-prime borrowers falling 90 days or more behind edged into double figures at 10.
UBS said that the move was "risk reduction" which was "a critical part" of its ongoing financial restructuring after its exposure to sub-prime loans.
A leading network of independent financial advisers has been fined pounds 900,000 for failing to keep adequate records of the advice it gave when selling sub-prime mortgages.
Sir - The sub-prime market is widespread in Britain too, the latest BBC File on 4 investigation revealed.
The latest jitters emanating from the collapse of the US sub-prime mortgage market, have raised fears about a generalised credit squeeze (i.
FINANCIAL PLANNERS OFFERED THEIR perspectives on how the sub-prime decline developed.