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.
A German bank is suing JP Morgan Chase & Co (NYSE: JPM) and Bank of America Corporation (BofA) (NYSE: BAC) over sub-prime mortgage securities.
The SEC says Goldman failed to disclose that one of its clients helped create - and then bet against - sub-prime mortgage bonds that the bank sold to investors including Royal Bank of Scotland.
LexisNexis Mealey (New York) has begun the publication of "LexisNexis Financial Services Litigation Report," a new monthly newsletter that covers the sub-prime mortgage crisis and the "next great mega-litigation.
Lehman Brothers, which has been hit by billions of dollars-worth of sub-prime mortgage losses, said it was planning to file for Chapter 11 bankruptcy.
21 /PRNewswire-FirstCall/ -- Diversified Mortgage Workout Corporation (Pink Sheets: DMWK) announces that the company has received several Sub-Prime Mortgage portfolio acquisition proposals ranging in dollar value of between $15,000,000 to $20,000,000 with a face value of approximately $80,000,000 to $100,000,000, representing a discount of 20% to 25%.
Two hedge fund managers yesterday became the first financial executives arrested over the US sub-prime mortgage scandal.
Issues such as high consumer debt, increased interest rates and a riskier approach to lending adopted by some sub-prime mortgage providers could seriously impact on the future of house prices in the UK, research suggested.
Is this the start of a consumer borrower credit crunch spawned by the lending debacle now coming home to roost in the sub-prime mortgage market?
At the end of 2006, the future of the UK sub-prime mortgage market looked bright.
RBS is to get a USD100m payout as it is considered to be the biggest victim of the alleged sub-prime mortgage fraud that Goldman Sachs is settling with the SEC.
When the sub-prime mortgage market collapsed, AIG was hit for billions of dollars in insurance claims.