Subprime lending


Also found in: Dictionary, Wikipedia.

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 underwriting on mortgages today is tough on everyone and we believe that the subprime lending that is happening is being underwritten even more carefully.
The Justice Department said last week that it is investigating General Motors' financing arm over its subprime lending practices.
The rise in subprime lending is indicative of a market returning to a normal balance and isn't cause for alarm, said analysts.
But because these Canadian plants were financed by the Icelandic banking system, they were crippled when Iceland's economy collapsed in 2008 as a result of the subprime lending crisis.
A likely candidate is cross-country differences in the structure and regulation of subprime lending markets.
Kroszner concluded, "The loans that are the focus of the CRA represent a very small portion of the subprime lending market, casting considerable doubt on the potential contribution that the law could have made to the subprime mortgage crisis.
Irish shares, and in turn many of our pension funds, have been battered by the subprime lending crisis across the Atlantic.
Content "is devoted to the entire range of legal topics raised by the subprime lending crisis," CCH said, and covers state and federal legislative changes, court decisions, federal banking regulatory issuances, international developments, trade association and industry news.
The subprime lending crisis has been a catastrophe for the U.
The subprime lending crisis is a contributing factor to mortgage fraud, both directly and indirectly.
Among the ten community districts with the highest rates of foreclosure in 2007, seven also were among the ten community districts with the highest rates of subprime lending in 2006.
By the time the 2009 legislative session convenes, the problems caused by subprime lending in Oregon will be more apparent than today.