Sub-Prime Lender

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Sub-Prime Lender

A bank or other financial institution that makes loans at interest rates higher than most other loans. Subprime loans are made to borrowers who do not qualify for ordinary loans because of bad credit history or some other reason. There is a higher risk of default on subprime loans. Their prevalence was a significant factor in the 2008 credit crunch. See also: Subprime mortgage.

Sub-Prime Lender

A lender who specializes in lending to sub-prime borrowers.

References in periodicals archive ?
The new firm will reportedly be the biggest subprime lender in the USA.
Through the first quarter, the bank had booked more than $55 billion in expenses tied to home loans, foreclosures or bonds backed by mortgages, mostly because of his predecessor's 2008 purchase of subprime lender Countrywide Financial Corp.
New York-based Blackstone acquired Irving, Texas-based subprime lender Exeter Finance Corp.
The acquisition made HSBC the biggest subprime lender in the US at the time, which resulted in billions of losses to HSBC leading up to the financial crisis of 2008.
ADPnews) - Apr 22, 2010 - The Czech, Slovak and Polish units of UK subprime lender Provident Financial (LON:PFG) booked a total profit of GBP 4.
the now-dissolved WaMu was the fifth most active subprime lender in the nation, making $65.
The Henry case, which appears to be the first attempt to reach one of the players behind the subprime lender, highlights both the challenges confronting plaintiffs and the risks to the industry players who historically viewed themselves as somewhat insulated from consumer class actions.
to stop taking applications for new loans because the subprime lender failed to inform the agency about its financial problems.
24) It instead places discretion in the hands of regulators and judges to determine on a case-by-case basis whether the refinancing practices of a particular subprime lender are so beyond the pale as to constitute predatory lending.
For example, numerous borrowers have sued the failed subprime lender Superior Bank, (24) alleging that the bank engaged in predatory lending.
The unit is to be sold to subprime lender, Springleaf, for more than USD4bn.
Friendly Finance Corporation is a subprime lender specializing in providing customers with auto loans before they have been discharged from a Chapter 7 or Chapter 13 bankruptcy, as well as customers with multiple bankruptcies.