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 ?
The US Justice Department filed civil fraud charges against S&P in 2013 when it accused the agency of giving top ratings to mortgage bonds which it knew contained sub-prime mortgage debts and where therefore not as safe anninvestment as suggested by the rating.
The Minister for Finance Michael Noonan has confirmed that 56% of the home sub-prime mortgage book is in arrears of 90 days or more," he said.
A German bank is suing JP Morgan Chase & Co (NYSE: JPM) and Bank of America Corporation (BofA) (NYSE: BAC) over sub-prime mortgage securities.
LexisNexis Mealey (New York) has begun the publication of "LexisNexis Financial Services Litigation Report," a new monthly newsletter that covers the sub-prime mortgage crisis and the "next great mega-litigation.
Lehman Brothers, which has been hit by billions of dollars-worth of sub-prime mortgage losses, said it was planning to file for Chapter 11 bankruptcy.
THE SUB-PRIME MORTGAGE CRISIS could have a negative impact on the sale of life insurance products, according to a recent research report issued by LOMA, Atlanta.
Two hedge fund managers yesterday became the first financial executives arrested over the US sub-prime mortgage scandal.
It said the return on nominal gilts had fallen significantly since the beginning of the year, largely due to the instability in the credit and sub-prime mortgage markets.
5bn from the US sub-prime mortgage crisis, but said profits were set to beat expectations.
Based on news reports, it would seem that all the housing problems rest on the doorsteps of sub-prime mortgage holders.
Issues such as high consumer debt, increased interest rates and a riskier approach to lending adopted by some sub-prime mortgage providers could seriously impact on the future of house prices in the UK, research suggested.
Is this the start of a consumer borrower credit crunch spawned by the lending debacle now coming home to roost in the sub-prime mortgage market?