"Subprime" redirects here. For the 2007 house mortgage crisis, see Subprime mortgage crisis.
This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Subprime lending" – news · newspapers · books · scholar · JSTOR(September 2015) (Learn how and when to remove this message)
Part of a series on
Living spaces
Main
House (detached) • Apartment * Green home • Housing projects • Human outpost • Tenement • Condominium • Mixed-use development (live-work) • Hotel • Hostel (travellers' hotel) • Castles • Public housing • Squat • Flophouse • Green home • Shack • Slum • Shanty town
Issues
Affordability • Affordability in the United States • Executive housing • Environmental: • design • planning • racism • Environmental security • Eviction • Fair housing • Healthiness • Homelessness • Housing crisis • Housing discrimination • Housing gap • Housing stress • Overpopulation • Housing inequality • Home ownership • Luxury apartments • Ownership equity • Permit • Rent • Subprime lending • Subsidized housing • Sustainable: • architecture • development • living • Toxic hotspot • Vagrancy
Society and politics
Housing First • NIMBY • Housing subsidy • Real estate appraisal • Real estate bubble • Real estate economics • Real estate investing • Redlining • Right to housing • Rent control • Rent strike • Tenants union • YIMBY
Other
Alternative lifestyle • Assisted living • Boomtown • Cottage homes • Eco-cities • Foster care • Group home • Halfway house • Healthy community design • Homeless shelter • Hospital • Local community • Nursing home • Orphanage • Prison • Psychiatric hospital • Residential care • Residential treatment center • Retirement community • Retirement home • Supportive housing • Supported living
Housing portal
v
t
e
In finance, subprime lending (also referred to as near-prime, subpar, non-prime, and second-chance lending) is the provision of loans to people in the United States who may have difficulty maintaining the repayment schedule.[1] Historically, subprime borrowers were defined as having FICO scores below 600, although this threshold has varied over time.[2]
These loans are characterized by higher interest rates, poor quality collateral, and less favorable terms in order to compensate for higher credit risk.[3] During the early to mid-2000s, many subprime loans were packaged into mortgage-backed securities (MBS) and ultimately defaulted, contributing to the financial crisis of 2007–2008.[4]
^The Financial Crisis Inquiry Report(PDF). National Commission on the Causes of the Financial and Economic Crisis in the United States. 2011. p. 67.
^Lo, Andrew W. "Reading About the Financial Crisis: A 21-Book Review" (PDF). Draft: January 9, 2012. Journal of Economic Literature. Archived from the original (PDF) on 13 January 2013. Retrieved 17 November 2013. The term "subprime" refers to the credit quality of the mortgage borrower as determined by various consumer credit-rating bureaus such as FICO, Equifax, and Experian. The highest-quality borrowers are referred to as "prime", hence the term "prime rate" refers to the interest rate charged on loans to such low-default-risk individuals. Accordingly, "subprime" borrowers have lower credit scores and are more likely to default than prime borrowers. Historically, this group was defined as borrowers with FICO scores below 600, although this has varied over time and circumstances, making it harder to determine what "subprime" really means.
^"Subprime Lending". U.S. Department of Housing and Urban Development. Archived from the original on 2016-07-02. Retrieved 2018-09-21.
In finance, subprimelending (also referred to as near-prime, subpar, non-prime, and second-chance lending) is the provision of loans to people in the...
controlled nearly 50% of all subprimelending. From 2003 forward, private lenders increased their share of subprimelending, and later issued many of the...
Predatory lending refers to unethical practices conducted by lending organizations during a loan origination process that are unfair, deceptive, or fraudulent...
correspondent lender and mortgage broker specializing in the origination of subprime and Alt-A mortgage loans. AFM also operated a wholesale mortgage lending division...
stock price fall to below one dollar after the subprime mortgage crisis, resurge by offering subprimelending. He was chairman of Fortress Transportation...
industry), and often through state intervention (direct lending by the government, direct lending by state-owned banks, or sponsorship of various entities)...
provides background information regarding the subprime mortgage crisis. It discusses subprimelending, foreclosures, risk types, and mechanisms through...
Minneapolis, United States. As a result of its exposure to subprimelending during the subprime mortgage crisis, the company filed for bankruptcy protection...
Accredited Home Lenders Holding, New Century Financial, DR Horton and Countrywide Financial Fremont Investment & Loan discontinues subprimelending after receiving...
that the crisis was not driven by reckless lending by lower classes, but rather greater mortgage lending across all income groups. In July 1978, Section...
higher rate of default than prime loans, subprime mortgage loans are priced based on the risk assumed by the lender. In marketing the company, New Century's...
subprime origination is problematic at best. A more proximate government action to the sudden rise in subprimelending was the SEC relaxing lending standards...
with the US subprime mortgage crisis. The major causes of the initial subprime mortgage crisis and the following recession include lax lending standards...
Mortgage discrimination or mortgage lending discrimination is the practice of banks, governments or other lending institutions denying loans to one or...
tendency to conflate the current problems in the subprime market with CRA-motivated lending, or with lending to low-income families in general. I believe...
Investment & Loan, an industrial bank that was one of the largest subprime mortgage lenders in the country during the early and mid 2000s. The company was...
the U.S.[dead link] Jon Menon, HSBC Rues Household Deal, Halts U.S. SubprimeLending, Bloomberg L.P. 2 March 2009. Neil Hume, Quote du jour – Stephen Green...
over them; subprime mortgage-lending and payday-lending are two examples, where the moneylender is not authorized or regulated, the lender could be considered...
did the calculations involved. Lending became much more creative which complicated the calculations. Subprimelending and creative loans such as the “pick...
the Federal Trade Commission for questionable practices related to subprimelending. Credit Acceptance repossesses 35 percent of the cars it finances....
executives from the top five subprime mortgage companies to testify and explain their lending practices. Dodd said, "Predatory lending practices endangered the...
to a particular type of financial service, namely subprime or near-prime lending (that is, lending to people with relatively poor credit) by non-bank...
Global Information
Housing portal