Sub-Prime Borrower

Sub-Prime Borrower

A borrower who does not meet the underwriting requirements of mainstream lenders.

Sub-prime borrowers pay more than prime borrowers and are sometimes taken advantage of. See Predatory Lending.

References in periodicals archive ?
That doesn't turn them into a sub-prime borrower - we are just pitching it somewhere in the middle.
There was the sub-prime borrower (the King), a lack of liquidity and runs on the bank, eventually resulting in the seizure of foreign assets and international turmoil.
Sub-prime borrowers are those people with a credit score below 640.
As we know a big portion of the growth in sales we're seeing is related to the fact that there's zero percent financing available; even sub-prime borrowers can get away with 3 to 4 percent on a loan on a new car," Alec Gutierrez, senior market analysts for automotive pricing company Kelley Blue Book Co.
The organisations also warned that unless the FSA changes its view that people buying shared ownership properties should be classed as sub-prime borrowers, the banks would continue to turn away more than pounds 240 million of valid business.
This expected development was made due to the reason that potential buyers of the automaker is facing hard financing terms with other third party financial services.This deal could well provide added buying power for sub-prime borrowers.
The pressure on sub-prime borrowers was revealed in rising impairment charges at Provident's consumer credit arm and its Vanquis Bank credit card offering.
Fannie Mae estimates that half of sub-prime borrowers qualified for prime loans--in part because banks paid brokers incentive fees to put borrowers into high-interest mortgages.
Congress has played a heavy role in the financial crisis, first by tearing down the walls between banks and certain aspects of commerce and also by putting pressure on lenders to open up to sub-prime borrowers.
The types of loans given often created the problems and they weren't just given or offered to only sub-prime borrowers. Some loans had an escalation clause where the interest rate and payment was low for the first X years and then increased, essentially making the home completely unaffordable for the buyers.
Shelter says thousands of sub-prime borrowers face a big shock when their existing deals end.
In the aggregate, these differences would cost Ohio's Libor-based ARM-holders roughly an additional $34 million in 2009 alone, should current interest-rate trends continue, with about 55 percent of this burden being shouldered by sub-prime borrowers.