By 2005, many lenders dropped the required FICO score to 620, making it much easier to qualify for prime loans and
making subprime lending a riskier business.
Not exact matches
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.
Wells Fargo spokeswoman Vickee Adams said the problematic FHA loans turned up as the bank reviewed operations at two mortgage channels it has closed down: a
subprime lending arm, Wells Fargo Financial, and a wholesale arm that
made loans through independent brokers.
Oblivious to the recent debacle in
subprime home
lending, auto lenders have worked hard to develop the
subprime (borrowers with credit scores below 640) auto loan market, offering seven and eight year loans and other strategies designed to
make monthly payments low.
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.
While many lenders are nervous when it comes to
making out a new mortgage for those with bad credit, there are many out there who understand that the average person who has found themselves with a mortgage payment that they can not pay is simply a victim of a risqué
lending practice that has fortunately come to an end with stricter legislation on
subprime lending being passed.
Although FHA was caught unawares by a tremendous increase in its market share when
subprime lending went south, it has
made important strides in monitoring mortgage lenders and enforcing FHA guidelines for underwriting mortgage loans.
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.
Lehman's decision to shutter the
lending unit, BNC Mortgage,
makes it the latest casualty in the
subprime mortgage meltdown that started earlier this year and rippled into the broader credit markets starting in late July.
The Government was twisting the arms of
lending institutions to
make subprime loans to those who were very unlikely to pay those loans back.
The FHA has
made this change to protect themselves from the higher
lending risks that are associated with
subprime (bad credit) borrowers.
Although the justification for the lower and lower
lending standards was to
make housing affordable for low and moderate income people, the boom really took off when middle class Americans started using
subprime loans.
100 % FALSE STATEMENT ABOUT
SUBPRIME I received a copy of an internally circulated newsletter from a huge real estate firm with the following 100 % incorrect statement about subprime lending: «Subprime loans — the type that fueled the Financial Crisis — are making a comeback in a
SUBPRIME I received a copy of an internally circulated newsletter from a huge real estate firm with the following 100 % incorrect statement about subprime lending: «Subprime loans — the type that fueled the Financial Crisis — are making a comeback in a
SUBPRIME I received a copy of an internally circulated newsletter from a huge real estate firm with the following 100 % incorrect statement about
subprime lending: «Subprime loans — the type that fueled the Financial Crisis — are making a comeback in a
subprime lending: «Subprime loans — the type that fueled the Financial Crisis — are making a comeback in a
subprime lending: «
Subprime loans — the type that fueled the Financial Crisis — are making a comeback in a
Subprime loans — the type that fueled the Financial Crisis — are making a comeback in a
Subprime loans — the type that fueled the Financial Crisis — are
making a comeback in a big way.
Capital has backed away from
lending to
subprime borrowers, and the concern is that Congress will
make it even harder for capital to get to borrowers who'll need it to refinance over the next couple of years,» says George.