Subprime mortgage

(redirected from Subprime Mortgages)

Subprime mortgage

Subprime refers to higher the risk. These are mortgages that are issued to individuals who are often not qualified. That is, the long term monthly mortgage payment is more than their income. Often, these mortgages are issued on the expectation that the homeowners income will rise in the future. These mortgages are often made feasible by teaser rates. This means that the rate might be very low for the first few years but then rise steeply. In periods of weakness in the housing market or the economy in general, these mortgages are the first to run into trouble.

Subprime Mortgage

A mortgage with an interest rate higher than most other mortgages. Subprime mortgages are provided 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.
Mentioned in ?
References in periodicals archive ?
MORE than half of subprime mortgages in Ireland are in arrears by more than 90 days, official figures have revealed.
[euro]1.8bn of sub-prime mortgages in debt woe
The correlation between the concentration of subprime borrowers and voting pat terns was greater in 2004, when subprime credit was beginning to flow, than in 1996, when subprime mortgages were still a small share of the overall mortgage market.
Congressional support for subprime lending
The problems with subprime mortgages are well-known, with many defaults and repercussions for businesses and investors alike.
It's not just subprime!
Subprime mortgages have been getting a lot of attention in the United States since 2000, when the number of subprime loans being originated and refinanced shot up rapidly.
Ten myths about subprime mortgages
The termination rates of subprime mortgages that originated each year from 2001 through 2006 are surprisingly similar: about 20, 50, and 80 percent, respectively, at one, two, and three years after origination.
Quick exits of subprime mortgages
Mortgage originators combined the riskiest subprime mortgages with other types of debt and created structured credit products like mortgaged backed securities (MBS) and collateralized debt obligations (CDOs).
The impact of the U.S. credit crisis on investor sentiment: evidence from Philippine financial markets and institutions
In hindsight, the risks of subprime mortgages are obvious.
Atlanta Fed economist examines the subprime crisis
As Gramlich explained in his fourth chapter, the social benefits of home ownership are significant; and the evolution of subprime mortgages received broad support in Congress and was generally well received in policy circles.
Subprime Mortgages: America's Latest Boom and Bust
Surveys of in-house counsel published by the American Bar Association predict large increases in litigation involving subprime mortgages and investments.
Subprime suits: the slow pace of litigation
The report, titled "Home Ownership, Subprime Loans and Poverty," found that in eight of the country's 15 poorest counties, which have poverty rates exceeding 40 percent, the percentage of homeowners holding subprime mortgages is even higher--up to 60 percent.
Subprime crisis, hunger linked
That's what happened on one important issue in this year's experimental annual session: Legislators adjourned Friday without giving stronger protection to people who finance their homes with subprime mortgages.
Subpar on subprime
The expanding subprime-linked losses stem from the slumping housing market, which in turn boosted delayed repayments of subprime mortgages, thereby a steep fall in value of financial products that have incorporated subprime mortgages.
U.S. subprime mortgage-related losses more than double

Financial browser ?
Full browser ?