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Sub prime lending is the process of making loans to people who may have difficulty maintaining the repayment schedule. Typically, these loans may have a higher interest rate, poor quality collateral, and less favorable terms, in order to compensate for the higher credit risk.
What else can I help you with?
Where can one find information about sub prime lending?
One can find information about sub prime lending from the following sites; Bankrate, SFGate, Department of Bank Insurance, HUD government, and Investopedia.
What is sub prime lending?
In finance, subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks such as unemployment, divorce, medical emergencies, etc. Historically, subprime borrowers were defined as having a FICO score below 640, although "this has varied over time and circumstances."
What is money given to a borrower with low income and assets?
Sub-Prime lending. Others simply call it foolish.
What is a sub prime credit card?
A sub prime credit card usually has higher interest rates and a lower credit limit than a regular card, but they can be used by borrowers with a lower credit score. Most major issuers issue them, but some smaller issuers also specialize in sub prime lending.
Subprime debt crisis?
Sub-prime debt was a major aspect to the Global Financial Crises overall. Sub-prime lending involved the opening of high risk secure and unsecured credit, and unscrupulous to criminal banking policies.
How can a person that has a felony buy a house?
Short answer: Can't do it! There are the prime and subprime lending markets. It is a fair bet that most all of the borrowers in the subprime lending market do not have any felony convictions. Everybody watching the news these last few months is probably weary of the news of the crash in the sup-prime lending market. Hugh lending institutions are going out of business after having bought into the concept of lending mortgage money to people who, for various reasons such as credit history, job stability, debt, education level, income level, did not qualify for borrowing money at the attractive interest rates offered to borrowers who qualify for the "prime" lending market. Another way of looking at sub-prime lending is to say that for various reasons sub-prime mortgage borrowers were not as credit worthy as prime lending market borrowers. This made rational the idea that they (lenders) could exact higher interest rates from people who were less creditworthy yet, who desired to borrow money to buy real estate. All this to say that convicted felons are much worse lending targets than the thousands of people who make up the sub-prime lending market. So in the lingo of old agrarian America: Convicted felons will have a "hard row to hoe" when it comes to borrowing money to buy homes. Chai Xiuchi, Dallas Texas
What does Regional Acceptance do?
Regional Acceptance Corporation is an auto finance company, specializing in indirect sub-prime automotive financing and prime-to-near-prime portfolio acquisitions. They are owned by BB&T, a financial services company.
Who is the founder of Dollar Loan Center?
Chuck Brennan is the founder of the Dollar Loan Center. He started the organization in 1998 when he saw a nationwide need in the sub-prime lending market.
Why sub-prime crisis is called as Sub-prime?
It is called "sub-rime" because the holding of sub-prime (low credit quality) debt precipitated the crisis.
Why is the offering of teaser loans by commercial banks a cause of economic concern?
The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
Can a mortgage become sub prime?
No. It begins life as a sub-prime mortgage.
What companies could have done to avert the predatory lending and sub prime lending?
To avert predatory and subprime lending, companies could have implemented stricter lending standards, ensuring that borrowers demonstrated the ability to repay their loans. Enhanced transparency in loan terms and costs would have allowed consumers to make informed decisions. Additionally, adopting responsible marketing practices that prioritize ethical lending over profit maximization could have mitigated exploitation of vulnerable populations. Regular audits and compliance checks could also help maintain ethical lending practices.
