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.
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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.
Judge says HSBC needs to face Chicago predatory lending lawsuit
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.
Financial engineering will not solve European crisis
The Federal Housing Finance Agency claims they sold pounds 25billion of sub-prime loans to mortgage giants Fannie Mae and Freddie Mac.
SHARES PLUNGE; Their stocks lead market tumble
These loans were non-prime or sub-prime loans mostly of the buy here pay here type.
Gulf Coast Auto Credit Announces Record Sub-Prime Auto Loans Funded in May
US sub-prime loans effectively poisoned asset-backed bonds as struggling American borrowers defaulted on their repayments, which then triggered the crippling global credit squeeze and subsequent banking meltdown.
Bond launch marks RBS mortgage market return
The vast majority of sub-prime loans between 1998 and 2006 stemmed from refinancing rather than home purchases.
WheresOurMoney.Org Puts a Human Face on the Refinancing Fiasco That Fed the Financial Crisis
The boom in complex mortgage backed securities and an entire alphabet soup of toxic investments - as well as sub-prime loans to those who could never afford them - were driven by a compensation culture which "ran out of control", he said.
Fitting candidate to deliver sermon; In association with Lloyds TSB
Many of the illegal foreclosures were on properties with sub-prime loans where the transfer of ownership was not recorded in local property records, making the foreclosure action illegal.
Auditing firm launches multi-state fraud investigation
Lenders, awash with the Fed's cash, happily issued more sub-prime loans.
Blame bad rules, not capitalism
61 percent, increased 18 basis points for sub-prime loans to 4.
MBA: CA, FL drive increase in record 2q national foreclosure rate
These bonds were used in "structured finance" products, such as so-called collateralised debt obligations (CDOs) - giving investors an exposure to different types of debt, from the riskier sub-prime loans to safer better-quality mortgage debt.
How the frenzied merry-go-round of debt led to calamity
The crisis has also affected international lenders, who bought into or offered sub-prime loans in the US and then contributed to bouts of chaos on international financial markets.
Bank of America profits plunge

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