Sub-Prime Lender

(redirected from Subprime Lenders)

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 ?
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.
While they often charged substantially higher interest rates, there were plenty of subprime lenders who would approve loans for borrowers with low credit scores.
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.
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.
According to the complaint, the CDO was backed by low-quality assets, including securities issued by subprime lenders New Century Financial Corp, which quickly went bankrupt, and Option One Mortgage Corp, then owned by H&R Block Inc.
He appealed to Finance Minister Brian Lenihan to persuade the country's main banks to absorb loans from subprime lenders to help ease the burden on borrowers.
An investigation by the nonprofit journalism organization found that nine of the top 10 subprime lenders were based in Los Angeles or Orange counties, including all of the top five - Countrywide, Ameriquest Mortgage Co.
Many of the nation's top 25 subprime lenders were highly active in Lane County until the market meltdown in late 2007.
Thus, Gramlich recommended intervention in the market for rental property, strengthening the consumer protection provisions of the Home Owner Equity Protection Act of 1994, and increasing federal supervision of subprime lenders.