Sentences with phrase «because subprime»

And therein lies the risk because a subprime loan could be fine if you are able to make good on it.

Card issuers and auto lenders may also be taking a cautious approach because subprime borrowers are less likely to be able to tap into home equity in an emergency than they could a decade ago.

That's because subprime auto loans tend to have very high interest rates and may also come with additional fees, making them significantly more expensive over the long term than the loan you could potentially obtain with better credit.

These days millions have turned to «buy here, pay here» car lots because subprime loans to buy cars are harder to find.

Because subprime lending was not evenly spread around the country (or even around a state or city), individual neighborhoods are bearing the brunt of the meltdown.

Because subprime borrowers present a higher risk for lenders, subprime lenders charge interest rates above the prime lending rate.

Not exact matches

Struggling to find enough drivers willing to put miles on their own cars, Uber recently began offering subprime auto loans to would - be drivers, conveniently extracting payments directly from their paychecks, or (because Uber insists its drivers aren't its employees) their «Uber earnings.»

Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled subprime borrowers and / or those with poor or limited credit histories with high - interest rate debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided loans to repay their existing loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of defaults; (iii) the Company was providing online loans to college students despite a governmental ban on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for loans provided by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers, loan information, accounts and, in some cases, passwords to CHIS, the state - backed higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant times.

We originally called our housing problems the «subprime crisis» because we thought the whole problem was centered on low - quality mortgages.

It is also expected to account for an even greater share of the total industry revenue, this is because they require higher fees than those charged by hedge funds and declining popularity of other alternative asset vehicles in the aftermath of the subprime mortgage crisis.

Partly this was because certain specialist subprime lenders gained market share, but individual lenders also lowered their standards.

AG Andrew Cuomo this morning rejected his rivals» suggestion that he is in part responsible for the subprime mortgage crisis because he pushed home ownership for low - income residents while serving as HUD secretary for the Clinton administration.

The IDC worked to put the brakes on bad practices in the subprime auto industry to protect consumers, some of whom are stuck paying the price of a new car for a junker because of the terms of the loan.

The problem of subprime mortgages began in part because the government tried to increase homeownership for poor people and minorities by enabling private entities to offer more mortgages without assuming the risk.

Because the original lenders no longer had, as Green says, any «skin in the game,» countless subprime mortgages were issued without adequate screening.

Another theory is that they are subprime because they usually look for shortcuts in life and often fail.

Subprime issuers will see their profits taking a hit because they can not charge ridiculous fees anymore...

In the recent case of subprime mortgages for example, many borrowers were unnecessarily steered to such mortgages because of easier underwriting guidelines and larger commission checks.

However, you don't have to be a victim of your credit history when you apply for a mortgage because of something called a subprime loan.

I believe they will still do that, largely because of the effect that falling housing prices will have on the credit of the residential mortgage market, and not just Subprime, but Alt - A, and Prime loans as well.

There were prime borrowers who were sold subprime mortgages simply because there was an incentive for the broker to do so.

Borrowers refinancing into FHA from the subprime market are better off, even with slightly higher mortgage insurance premiums, because FHA insurance gives them access to substantially lower interest rates, and lowers their overall mortgage costs.

Because most Mariner loans are subprime, the APRs range from 24 percent to 36 percent.

The commercial paper market, a vital conduit of financing for U.S. companies, has shrunk dramatically in the past two weeks because of worries that assets in the ABCP collateral pool included tainted subprime mortgages.

I wouldn't call these loans subprime just yet though, because a steady income stream is pretty much mandatory, but I feel like tendencies are pointing to the idea that banks might start tapping into the subprime market sooner or later.

I've been on the sidelines through the entire subprime mortgage mess because I have a 15 year fixed mortgage.

The reason that information is promising is because people with subprime and deep subprime credit ratings don't generally land the lowest auto loan rate s.

Borrowers with scores below 620 are sometimes characterized as «subprime,» and because lenders view them as risky, they frequently charge them higher rates — if they'll lend to them at all.

Lynn Turner, chief accountant of the SEC from 1998 to 2001, says the SEC will likely look into money market funds investing in CDOs, particularly because the value of subprime collateral of CDOs can collapse suddenly....

Das says that because so much subprime debt is held by CDOs, there is constant risk that the value of the investment can drop or collapse....

On Aug. 9, BNP Paribas SA, France's biggest bank by market value, froze withdrawals on three investment funds with assets of 2 billion euros because the bank couldn't find a way to value its U.S. subprime bonds and other assets.

Specifically, many were willing to purchase and hold subprime securities because the higher current yield was more important to them then downside protection.

Moreover, when it comes to bad credit applicants and subprime lending, you need to be extra careful because lenders tend to include additional fees and costs to maximize the gains to compensate for the higher risk that lending to those with bad credit implies.

Many homeowners have ended up in foreclosure because of subprime mortgages.

Government mortgage programs offer competitive interest rates for borrowers who would normally have to refinance with a higher rate from a subprime lender because of their low credit scores.

This is mainly because it had a lot to do with the housing and subprime mortgage crisis that wrecked the U.S. economy.

By the way, these were the high - risk loans given to «subprime» borrowers who did not qualify for the best interest rates (because of bad credit, no down payment, etc.).

To make matters worse, the alternative available to you — the subprime lending in the auto market — might not seem too appealing because of what the public thinks and says about it.

Because the risk is higher for lending companies to take a chance on subprime borrowers, they are charged higher interest rates for the privilege of getting a loan.

Those with less - than - stellar credit scores and track records are having a harder time getting subprime loans from lenders because of the default rates.

He believes that the Federal Reserve is more likely to keep interest rates low because of subprime mortgages.

First, with property values on the rise, subprime borrowers were able to gain home equity despite paying less than the fully amortized payment or interest - only payments each month because of the appreciation.

As noted, both the FHA and VA allow subprime borrowers to apply because they accept credit scores well below 620.

More than half of Americans are effectively shut out of the financial system because they have a credit score that is considered subprime.

Because of the subprime mortgage meltdown and the weakened economy, loan officers are hungrier than ever for business.

Most people who have subprime mortgages whether deliquent or current will not be able to get FHA secure loan because there is no equity in their home.

All subprime loans function similarly because they're a loan for those borrowers with a high risk of defaulting due to low credit scores, poor or little credit history, a high debt - to - income ratio, or other factors.

According to the MBA, the reason many people are falling behind in their mortgages is not because of shady loans — 33 percent of new foreclosures are coming from traditional fixed - rate mortgages, while only 16 percent come from subprime loans - instead they have everything to do with lost jobs.

In fact, after the subprime mortgage crisis of 2007 - 08, they became known as «liar loans,» because borrowers and lenders were able to exaggerate income and / or assets to qualify the borrower for a bigger mortgage.

Because Alt - As are viewed as somewhat risky (falling somewhere between prime and subprime), interest rates tend to be higher than those of prime mortgages but lower than subprime — somewhere around 5.5 % to 8 %, depending on the lender and the borrower's situation.