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 ?
This TURN-KEY used car dealership works w/leading subprime lenders & they can arrange financing for any deal - big or small.
Jay Levine, the chief executive officer of OneMain Holdings Inc, one of America's largest subprime lenders, said last week that "the availability of unsecured credit is currently the greatest that has been in recent years," although he said much of the most intense competition is coming from credit card lenders.
Figures from the Central Bank indicate 20,338 mortgage accounts issued by subprime lenders were in arrears of more than 90 days at the end of last September.
Here are four differences the CFPB highlighted regarding how credit unions, banks and subprime lenders run their card programs.
While the FHA was still offering favorable mortgage terms for qualified borrowers, subprime lenders were offering a much easier and faster application process, at times with no down payment requirement.
Subprime lenders have found cheap funding in the bond market, with $17.
Unite called for urgent action to restore incomes, and legislation to clamp down on subprime lenders.
The historical absence of affordable credit in communities of color and for applicants of color, which created a market void into which subprime lenders grew, was not accidental.
The suit claims that Morgan Stanley didn't consider borrowers' risk when approving loans because it received its profit at the outset, before passing the loan on to subprime lenders.
The Wall Street firms that bankrolled subprime lenders and turned their high-risk loans into securities.
Subprime lenders had accounted for the bulk of the investment growth early in the decade," said Jeff Lebowitz, president of MORTECH and author of MORTECH 2010.
is journalist Rivlin's name for the commercial complex of payday loan operations, subprime lenders, check cashing outlets, pawnbrokers, and the like that have grown into big business in the United States over the past two decades, generating immense profits in the process of fleecing and often defrauding the working poor.