(1.) This article does not address issues presented by subprime
lending in the auto finance or manufactured housing industries.
Oregon has remained relatively immune to the subprime
Gibson said that, nationally, subprime
loans have represented a significant percentage of loans originated in the past 18 months.
The authors examine subprime
mortgages (defined as mortgages to borrowers with FICO credit scores below 660) issued between 2002 and 2006.
TransUnions report found that origination growth in the subprime
risk tier grew at a significant rate across auto, personal loans and credit cards following declines in 2017.
Much of my recent research focuses on understanding three key issues related to subprime
mortgages and minority borrowers during the last housing cycle: the role of subprime
loans during the housing boom, the foreclosure crisis, and the vulnerability of minority homeowners during the boom and bust.
Summit Financial Corp., a Plantation, Florida-based subprime
car finance company, filed for bankruptcy late last month after lenders including Bank of America Corp.
Almost 9.7 percent of subprime
car loans made by non-bank lenders have come close to default in the third quarter.
With their exorbitant and unavoidable fees, subprime
specialist issuer cards can cost a consumer an average of $154 during the first year and $166 every year after that, while secured cards charge, on average, $26 in the first year and $19 in the following years, according to a NerdWallet (https://www.nerdwallet.com/blog/credit-card-data/consumer-credit-card-trends-study/) report released Tuesday.
While the recent 20-year high in subprime
auto delinquencies merits close watch, it's important to note that this number is a fraction of the total number of subprime
auto loans being originated.
Using data from Mintel and Experian, the CFPB found that in 2013 and 2014, subprime
issuers sent more than half of their marketing mailings to households headed by consumers with no college education.
Many studies of the housing market collapse of the last decade, and the associated sharp rise in defaults and foreclosures, focus on the role of the subprime