Subprime market

Subprime market

Refers to the market for subprime loans, subprime mortgages and their securitized forms such as MBS, asset-backed securities, CDOs, etc.
References in periodicals archive ?
According toAmerican Banker, banks in general werenot making commitmentsin response to the OCC bulletin, which it attributed to "lingering skepticism about the business opportunities in the subprime market." The Community Financial Services Association of America, an organization that represents the small-dollar lending industry, said that while it welcomed competition in the market, it thought banks would find such small loans "unprofitable and unsustainable, due to the high cost and risk of offering these products," according to an opinion piece written by Dennis Shaul, CEO of the Alexandria, Virginia, organization.
Some also claim that ratings were less accurate in the subprime market than elsewhere.
The business has carved out a strong niche in the subprime market for used cars, which has proven to be a successful business model.
Progress so far is attributed partly to 'vanilla' mortgage features, with fully amortising, full-documentation loans, no subprime market, and uniform underwriting guidelines such as the nationwide Chinese loan-to-value (LTV) cap that currently limits lending to 80% of the value of a residential property.
The subprime market for cars is beginning to sound the warning about pockets of excess for consumers as well.
When lending standards tightened after the subprime market crashed in the middle of 2007, three types of potential borrowers could no longer obtain a mortgage loan: borrowers who would have gotten a subprime loan had the subprime market continued to exist, borrowers with subprime mortgages who needed to refinance into loans with better terms, and borrowers who could not afford large down payments but were otherwise creditworthy.
In the subprime market, funding can get held up for weeks, she's noticed.
The subprime market, which was extremely lucrative before it collapsed, involved banks selling and reselling mortgages to customers and themselves, which ultimately turned out to be junk and not worth as much as people thought they were.
Because this system is far less complex than the US subprime market, where the risk was widespread throughout whole system, in times of crisis, it s very easy to contain, he said.
It says S&P delayed updating its ratings models, rushed through the ratings process and was fully aware that the subprime market was flailing even as it gave high marks to investments made of subprime mortgages.
According to Edmunds, key driver of this resurgence, according to Edmunds.com, is the revival of the subprime market, which accounted for a quarter of all new auto loans in the second quarter of 2012, up from a second quarter low of 17.6 % in 2009.
Costa Mesa, California-based Experian announced it has provided Clearwater, Florida-based Clarity Services Inc., a provider of thin-file and underbanked consumer data reporting, with custom analytics via Exper-ian's Precise ID [sm] platform to help the company further penetrate the subprime market with its new Clear Sub-prime ID Fraud [TM] solution.