Sub-Prime Lender

(redirected from Sub-Prime 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 ?
These ridiculous sub-prime lenders have somehow slipped through the net and the Nolans are just one example of countless people who have been caught in their trap.
She told the People: "As shops close, more of these wealthextracting sub-prime lenders are opening up.
It is hoped the new initiative will encourage local residents to use Knowsley Mutual's financial services instead of borrowing from costly sub-prime lenders and loan sharks.
Meanwhile, the Government warned sub-prime lenders it was turning the spotlight on to them to ensure they only repossessed people's homes as a last resort.
Housing charity Shelter say many sub-prime lenders have refused to join governmentled schemes to avoid repossessions and will now start calling in bad debts.
And Shelter accused sub-prime lenders, who specialise in offering mortgages to borrowers with poor credit histories, of failing to comply with the gover nment call to show patience with families in trouble.
It also uncovered irresponsible practices among sub-prime lenders in particular as part of a review of firms, such as failure to check borrower income, and the FSA said it is now considering referring several firms to enforcement action.
They are the latest sub-prime lenders to face closure in the wake of the sub-prime crisis.
Hundreds of thousands of borrowers were forced to default and several major American sub-prime lenders filed for bankruptcy.
Sub-prime lenders in the UK have left the market or are not lending at all because they haven't the funds.
Mortgage lending: Increase oversight of sub-prime lenders, crack down on "rescue mortgage" scams and require disclosures to homeowners to help avoid foreclosure if they fall behind on their payments.
Shelter Cymru said so-called sub-prime lenders - companies that lend to people with poor credit histories and low incomes and which charge higher interest rates and charges than high street banks - are largely to blame for the startling rise.