Sentences with phrase «by subprime borrowers»

Worse, 11.0 percent of the total owed on plastic was on accounts run by subprime borrowers, who on average owed $ 5,063 each.

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Such an outcome could prove to be a classic unintended consequence: Morneau's reforms — meant to reduce or contain the accumulated risk created by precipitously over-leveraged homebuyers — may unwittingly increase the overall systemic risk in the economy by driving red - lined borrowers to the sort of uninsured subprime mortgages that have proliferated in the shadow banking sector.

It followed a report last month by the Seattle Times newspaper and online BuzzFeed News accusing the largest U.S. mobile home builder of exploiting black, Latino and Native American borrowers by driving them into subprime loans they can not afford, and harming communities by repossessing homes after borrowers default.

Big Wall Street banks have found a way to continue funneling money to high - risk borrowers — by lending to other institutions who make the so - called subprime loans.

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.

The subprime category also includes borrowers with «reduced repayment capacity» as indicated by their credit scores or debt - to - income ratios.

During the boom in subprime mortgages, US lenders thought they could manage their exposure to these risky borrowers by ensuring they would not remain customers for long.

The subprime category also includes borrowers with «reduced repayment capacity» as indicated by their credit scores or debt - to - income ratios.

Many potential borrowers have been hurt by the recent turmoil in the subprime market.

While many delinquencies have been caused by adjustable rate mortgages for subprime borrowers or with gimmicky features which caused payments to reset to unnaturally high levels, the rise in ten - year Treasury yields is a warning that a broader population of mortgage holders could face higher mortgage rates.

This number is widely used by lenders to distinguish between «good» and «subprime» borrowers.

Since installment loan borrowers are almost exclusively subprime borrowers with poor credit histories, the loans are typically secured by personal property like cars, electronics, tools, guns, jewelry, etc..

Auto loans to subprime borrowers, with credit scores between 550 and 619, increased by more than 11 % over fourth quarter 2011.

Unlike subprime lenders, FHA requires that borrowers demonstrate they can pay their mortgage by verifying their income and employment.»

Moreover, Experian reported that in the fourth quarter of 2012, lenders increased auto loans to borrowers identified as deep subprime, with credit scores below 550, by 31 % year over year.

Information collected by Fitch Ratings uncovered that the auto loan delinquency level is now at 5.8 percent, the highest rate in some time.Despite the growing economy in the United States, an increasing number of subprime auto loan borrowers are defaulting on their loans.

Beware of predatory lenders - Some subprime lenders may try and take advantage of high risk borrowers by charging excessive fees and unreasonable interest rates.

Paul Siegfired, senior vice president for TransUnion, commented that this uptick can also be explained by more subprime borrowers entering the card market — an event that occurs as banks relax their lending standards.

Bank risk professionals now believe that lenders will keep allowing subprime borrowers to take on credit card debt and have more access to auto loans over the next six months, according to a survey by the Professional Risk Managers» International Association for the credit scoring company FICO.

Subprime loans can help borrowers fix their credit scores, by using it to pay off other debts and then working towards making timely payments on the mortgage.

Beware of predatory lenders - Some subprime lenders take advantage of high risk borrowers by charging excessive fees and unreasonable interest rates.

NEW YORK, June 26 (Reuters)- Delinquency rates are rising for so - called «Alt - A» home mortgages held by U.S. borrowers who are rated above the subprime category but below the more pristine prime borrower, said Standard & Poor's in a report on Tuesday.

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.).

Borrowers once served by the Federal Housing Administration turned to subprime and Alt - A mortgages.

A 2005 study by the Center for Responsible Lending concluded that borrowers with subprime loans and prepayment penalties do not receive lower interest rates, and may actually pay higher rates.»

However, lenders make bigger profits on subprime loans, interest rates are higher on subprime loans, subprime loans with high rates have been commanding higher prices in the secondary market and borrowers are dependent on loan officers to help them make financing choices — loan officers who get bigger commissions by marketing subprime loans.

He added that any subprime failures would be offset by the quality of most American borrowers being «unusually high.»

Unfortunately, during the same time that subprime borrowers became more involved in the American housing market, more variable - rate mortgages were issued by lenders.

Also, they didn't do any subprime lending, because they can't: the definition of a subprime loan is precisely a loan that doesn't meet the requirement, imposed by law, that Fannie and Freddie buy only mortgages issued to borrowers who made substantial down payments and carefully documented their income.

By approving of the modernization reforms, Montgomery claimed that the «FHA could potentially assist tens of thousands more borrowers who need an exit strategy from their subprime mortgages.»

In some instances, card issuers may also be reducing their exposure to subprime borrowers by reducing the size of those customers» credit lines.

By 2009, 50 % of those subprime mortgages were «underwater», meaning that borrowers owed more money on the mortgage than the home was worth.

The granting of undocumented mortgages to subprime borrowers was a major contributor to the Great Recession, so it's understandable that lenders reacted violently by cutting off credit to all but the most creditworthy customers.

The Credit Suisse plan would open the way for nearly 600,000 subprime borrowers, many of whom are delinquent on their mortgages, to refinance into loans backed by the FHA.

The subprime mortgage crisis of 2007 — 10 stemmed from an earlier expansion of mortgage credit, including to borrowers who previously would have had difficulty getting mortgages, which both contributed to and was facilitated by rapidly rising home prices.

Insurance of the loan by the FHA reduces the risk faced by the lender when making a loan to a subprime borrower, thus making them more likely to do so.

Outstanding subprime auto debt (classified in the chart below as debt held by borrowers with origination credit scores under 620) now stands at about $ 300 billion... Since 2011, the overall delinquency rate of loans originated by auto finance companies has significantly deteriorated.

A voluntary mortgage aid plan announced by President George W. Bush last December called upon lenders to freeze the mortgage rates of some subprime borrowers for five years.

A considerable 32 percent of mortgages obtained by black borrowers in 2004 were subprime — a percentage now at only 7 percent.

Thanks to programs such as those proposed by Fannie Mae and Freddie Mac to assist subprime borrowers, many lenders are more willing to offer loan modification options.

Additionally, that 10 percent increase in student loan debt increases the probability that a borrower falls into the subprime category (a credit score of 620 or less) by 0.6 percent.

The mortgage lending giant faces the largest fine ever imposed by the Federal Reserve over charges that it steered borrowers toward subprime mortgages with higher interest rates during the housing boom.

«By and large, the ARM market was polluted by the abuses that went on with subprime mortgages,» said Guy Cecala, publisher of Inside Mortgage Finance, adding that «prime» mortgages sold to borrowers with solid credit histories tend to have much clearer termBy and large, the ARM market was polluted by the abuses that went on with subprime mortgages,» said Guy Cecala, publisher of Inside Mortgage Finance, adding that «prime» mortgages sold to borrowers with solid credit histories tend to have much clearer termby the abuses that went on with subprime mortgages,» said Guy Cecala, publisher of Inside Mortgage Finance, adding that «prime» mortgages sold to borrowers with solid credit histories tend to have much clearer terms.

By comparison, only 2 % of borrowers with incomes of $ 118,000 or above relied on subprime loans in 2015 (down from 6 % in 2004).