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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"After the subprime mortage market collapsed, it has been a flight to quality," says Crockett.
Franklin American's formula: this Nashville-based mortgage company stubbornly refused to be a follower when many in the industry started chasing alt-A and subprime business. It's now reaping the benefits of its more conservative course, and 2008 looks to be a record origination year
The subprime mortage resets peak during the second quarter, coupled with problems at Fannie Mae and Freddie Mac, loom large over economy, iSuppli noted.
Recession spells end of Foxconn effect, analyst says
The Lehman Brothers foundered after it failed to settle a US$60 billion bill as an after effect of the subprime mortage crisis that begin in 2007.
Will Indonesia is dragged into the mire of U.S. financial crisis?
DAVOS: Business leaders said yesterday they were aghast at a $7 billion fraud at French bank Societe Generale, which comes just as banks worldwide are reeling from losses inflicted by the subprime mortage crisis.
Business world stunned by SocGen affair
The published guidance on both nontraditional mortgage product risks and subprime mortage lending, along with comments in recent months from banking regulators including the Federal Reserve, confirm that federal regulators feel the pressure to act aggressively on the subprime lending turmoil.
Building on more solid ground: the mortgage industry is reeling from a period of bad news and market excess that has triggered an ongoing response from lawmakers and regulators. What some have called a market on steroids has since come crashing down to reality

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