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:Subprime redirects here. For the 2007 house mortgage crisis, see Subprime mortgage crisis. Look up subprime in Wiktionary, the free dictionary. This article has multiple issues. Please help improve the article or discuss these issues on the talk page.
Subprime lending (near-prime, non-prime, or second-chance lending) in finance means making loans that are in the riskiest category of consumer loans and are typically sold in a market from prime loans. The standards for determining risk categories refer to the size of the loan, "traditional" or "nontraditional" structure of the loan, borrower credit rating, ratio of borrower debt to income or assets, ratio of loan to value or collateral, documentation provided on those loans which do not meet Fannie Mae or Freddie Mac underwriting guidelines for prime mortgages (are "non-conforming"). Although there is no single, standard definition, in the United States subprime loans are usually classified as those where the borrower has a FICO score below 640. Subprime lending encompasses a variety of credit types, includingmortgages, auto loans, and credit cards. The term was popularized by the media during the "credit crunch" of 2007. Subprime could also refer to a security for which a return above the "prime" rate is adhered, also known as C-paper. Subprime borrowers show data on their credit reports associated with higher default rates, including limited debt experience, excessive debt, a history of missed payments, failures to pay debts, and recorded bankruptcies. The Wall Street Journal reported in 2006 that 61% of all borrowers receiving subprime mortgages had credit scores high enough to qualify for prime conventional loans. Proponents of subprime lending maintain that the practice extends credit to people who would otherwise not have access to the credit market. From Wikipedia under the
GNU Free Documentation License Is the sub prime lending crises due to banks trying to unload mortgages/bussiness loans of illegal alians? Q. What are the major "low" lending standards that has caused the "sub prime" mortgages crises? Asked by tuff2bme001 - Sun Oct 14 12:05:44 2007 - - 3 Answers - 0 Comments A. It mainly dealt with subprime mortgages (people with bad credit given terrible mortgages with bad terms) and other adjustable rate mortgages. These loans were made to many different people, not illegal aliens. These mortgages did not have fixed interest rates. When you have an ARM (Adjustable Rate Mortgage) your payment goes up after the teaser rate period ends. Needless to say, many people did not understand their mortgages when they signed up for them and when their payments went up, they were unable to make them which lead to foreclosures. I directly work with corporate finance and what are called asset backed securities and mortgage backed securities. These are loans that are grouped together and "securitized" and then sold off as… [cont.] Answered by aecruiser - Sun Oct 14 12:18:17 2007 did George bush cause the sub prime mortgage crisis? Q. I remember for years he saying "american home ownership rates have been rising all throughout my presidency and that's a great thing". Now we have this sub prime mortgage crisis where people who couldn't get a home at first got a home and now they can't pay their mortgages. Is bush at fault? Asked by XINIO654-THE NOLDOR GAYTHEIST - Sat Aug 30 20:14:45 2008 - - 15 Answers - 0 Comments A. No. DUring the CLinton administration, mortgage companies were mandated to make loans available to lower income families.(Who couldnt afford them!) Biden was actually part of that whole thing. Duchess X: That is precisely the opposite of what happened. Answered by Cookie Monster - Sat Aug 30 20:19:24 2008 Sub Prime market crash- Is it entirely related Real Estates of US?
Q. Is the whole of Real estate business in US is hit by Sub prime crash? It seems, the onset of this phenomenon is almost sudden . Is any other sector like this is still ticking to be blown off? Asked by Neatest Inbox Holder - Mon Dec 10 08:56:41 2007 - - 2 Answers - 0 Comments A. Real estate is the most important sector, but there are others too. For example, a record producer might be expecting a certain amount of revenue from a certain record. The producer could package those revenues in a security, much like mortgage backed securities, and sell it. The market's perception of risk could change drastically, causing financial institutions to have funding problems. Answered by Allan - Sun Dec 16 12:27:25 2007 From Yahoo Answer Search: "Sub Prime"
 miamiherald.com Thu, 22 Jul 2010 12:46:14 GMT+00:00 MiamiHerald.com s planned purchase of subprime lender AmeriCredit Corp. ``I wouldn't run an automotive manufacturer without a captive financing arm,'' Jackson said in an ... Auto sales recovery pushes AutoNation 2Q higher MiamiHerald.com  mortgagestrategy.co.uk Tue, 13 Jul 2010 06:44:38 GMT+00:00 - prime borrowers Mortgage Strategy If the borrower was credit impaired the FSA could subtract 20% from that amount, so rather than being able to borrow 1000 the sub - prime would only be able ... Mortgage firm to pay 5000 compensation for unfair fees Money Saving Expert Picking up the pieces of the boom in Liar's Loans Scotsman Leader: Market's date with destiny Mortgage Strategy BBC News  ft.com Tue, 29 Jun 2010 01:37:06 GMT+00:00 crisis Financial Times The parallel between the Greek debt crisis and the subprime crisis is striking. Trashy debt is alchemised to gold through manipulations driven by a ... From Google News Search: "Sub Prime"  blog.estadao.com.br 360px x 488px | 44.70kB [source page] BRICs Economia internacional Estados Unidos 13 44 50 O estrago do subprime esta se alastrando A vitima mais recente sao inquilinos de casas e apartamentos que entraram em execucao de hipoteca Tudo comecou com uma onda de calotes em From Yahoo Image Search: "Sub Prime"  dealbook.blogs.nytimes.com By DEALBOOK Mon, 12 Jul 2010 12:07:06 GM Cambridge Place Investment Management is suing 15 banks for misleading investors about a total of $2.4 billion in mortgage-backed securities that they sold.  barbaracolebythesea.com Barbara ue, 20 Jul 2010 04:10:07 GM Of course, you might be able to make more than you pay the bank for interest by investing in . sub. -. prime. loans. That is called speculation, and that, in effect, is exactly what the Old Guard did. To be precise, over $7 million of idle ...  businessmirror.com.ph unknown Sat, 19 Jun 2010 09:36:08 GM The implosion of the US market for . subprime. mortgages to people with poor credit histories helped trigger a financial panic and almost $1.8 trillion in losses and writedowns at financial institutions worldwide. ... From Google Blog Search: "Sub Prime" |
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