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 ?
He has previously worked in prime and sub-prime lending, as well as equity release lending as a senior underwriter and operations manager at companies such as Stonehaven UK Limited, Platform Home Loans and Barclays Bank (LSE: BARC) (NYSE: BCS) Woolwich Plc.
It shows that sub-prime lending is just one percentage point lower than it was in 2008 at the start of the auto industry crisis even as the average prime-lending credit score is almost back to 2008 levels.
Boasting a tremendous worldwide network of clients both wholesale and retail, a substantial floor plan credit line,direct prime and sub-prime lending sources for retail clients of all credit types.
The banking giant added that while bad debt charges were higher than a year earlier, they were lower than the previous quarter and slightly below levels expected in the US - a key market given its exposure to sub-prime lending.
2 /PRNewswire/ -- In recent months, the sub-prime lending market has collapsed, as many borrowers can no longer afford their monthly payments.
Higher borrowing costs and a rise in sub-prime lending meant the number of UK homes being repossessed jumped in the first half of 2007, according to figures released yesterday.
The insanity of the sub-prime lending spree must have reached its peak when a California mortgage broker persuaded a seventy-year-old woman to take a mortgage requiring payment of $2,200 a month, when her income was less than half of that.
For borrowers, the key to taking advantage of the fertile market for sub-prime lending is working with a mortgage broker familiar with sub-prime lenders, many of which have wholesale operations only and cannot be directly approached by borrowers.
Carl Geuther, WMC's chief financial officer, said the company will emphasize its sub-prime lending business.
The previously dismissed sub-prime lending situation has roiled credit markets and although the potential ripple effect is recognized, its magnitude is still unclear.
Tucker has been involved in sub-prime lending since its infancy.
com/reports/c58756) has announced the addition of Datamonitor's new report: An Overview To Sub-Prime Lending In Western Europe 2007 to their offering.