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 ?
This significant financing commitment bolsters Pelican's plans to be a major, long-term player in the deep sub-prime auto finance space.
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.
THOUSANDS of families with high-risk sub-prime mortgages face losing their homes this summer.
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.
To compound the problem, many mortgages, and not just those of the sub-prime variety, require payment on the interest only in the early years, meaning that home owners are in for a major shock when payments on the principal begin to be required.
owner of Puerto Rico's biggest bank, will close its sub-prime lending unit, a move that will cost the company US$39 million in charges and about 627 people their jobs, reports Bloomberg News (Jan.
Just look at the tact that sub-prime lending is the faster-growing area of retail bank assets and that tells you that the quality of the U.
Godwin Sub-Prime electric submersible pumps are available in Y2 to 90 horsepower with flows to 5,000 gallons per minute, heads to 375 feet and solids handling to 3.