Subprime lending

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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 ?
Amigo's sub-prime loans market Debt charity StepChange said that it had 22,281 clients with guarantor loans last year, up 35 per cent from 2017.
"The credit quality of GM Financial's loan portfolio should improve steadily as the proportion of prime loans increases relative to near-prime and sub-prime loans," said Jason Grohotolski, a Vice President and Senior Analyst at Moody's.
According to Cook County, the bank's affiliates used sophisticated algorithms to provide black and Hispanic borrowers with sub-prime loans they often could not afford.
If you go to court you might get more money, though it costs a lot more to do that." HSBC became embroiled in the scandal in 2003 after buying HFC - a bank known for dealing with sub-prime loans in the US.
It is indeed a pity that an economic collapse triggered by the manipulations and greed of bankers and financial brokers in the USA in 2008 (sub-prime loans), has crippled the global economy.
While the sub-prime loans debacle in the US did spark the financial crisis, if Europeans had been responsible in their spending and debt accumulation, they would have been able to better manage the consequences, as did countries like Germany and China.
Moody's and Standard and Poor's made ghastly errors during the last decade, in giving a high rating to mortgage packages stuffed full of toxic sub-prime loans.
Sub-prime loans accounted for only $100 million of this total--reflecting the impact of tighter underwriting strategies.
These loans were non-prime or sub-prime loans mostly of the buy here pay here type.
The bond, which is backed by sub-prime loans, is expected to be priced later on Wednesday.
By now everyone has heard enough about the reasons we, as a country, are in the shape we are in: the building boom, loose credit, lowered credit standards, sub-prime loans, no-doc (no financial documentation) loans, etc.