Sentences with phrase «risky subprime borrowers»

Also, many more mortgages were issued to risky subprime borrowers.

Not exact matches

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.

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.

As an Alt - A lender, IndyMac's business model was to offer loan products to fit the borrower's needs, using an extensive array of risky option - adjustable - rate - mortgages (option ARMs), subprime loans, 80/20 loans, and other nontraditional products.

The riskiest of the subprime auto loan borrowers might find more luck in going with smaller lenders that are willing to accept the risk to stay in the lending game.

Navient is accused of making billions of dollars in risky, subprime student loans to borrowers who have little hope of repaying them.

«The subprime mortgage market [in which lenders dealt out high interest loans to risky, often low - income borrowers who couldn't make their payments] are virtually nonexistent,» says McBride.

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.

In 2004, as regulators warned that subprime lenders were saddling borrowers with mortgages they could not afford, the U.S. Department of Housing and Urban Development helped fuel more of that risky lending.

Subprime lending is riskier, because borrowers are more likely to default.

However, subprime mortgage loans have proven to be extremely risky for borrowers with bad credit or low income, a problem which has resulted in a recent surge of foreclosures.

That's because so many borrowers there, facing high housing costs, turned to risky subprime loans during the boom and now are in trouble as rates reset to levels they can't afford.

The Justice Department estimates that approximately 30,000 borrowers were charged higher fees and approximately 4,000 steered into risky subprime loans.