Sentences with phrase «sold subprime mortgages»

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

Brokers were paid higher commissions to sell subprime mortgages than prime mortgages.

Not exact matches

Back in 2010 it paid $ 550 million to settle charges brought by the Securities and Exchange Commission that it mislead investors into buying a so - called synthetic collateralized debt obligation named Abacus, which was made up of a bundle of financial instruments tied to subprime mortgage bonds, many of which plummeted in value shortly after the deal was sold.

It owned office buildings and stores; financed supermarkets, fast - food franchises, and other mid-market businesses; loaned money to consumers; sold insurance; and at one time even made subprime mortgages.

It got into trouble by selling guarantees on mortgage securities that forced it to pay billions of dollars after the subprime mortgage bubble burst in 2007.

Around the time that the bank agreed in 2010 to pay $ 550 million to settle charges it improperly sold a product linked to subprime mortgages, chairman and Chief Executive Blankfein launched a global review to strengthen the firm's practices and culture.

So with poetic justice, it was in the same position as the subprime borrowers whose junk mortgages it had underwritten and sold to investors gullible enough to believe Moody's and Standard and Poor's AAA ratings.

He devises a way to bet against the housing market, to buy subprime mortgages to sell short.

With subprime, they were able to spread that risk by selling the mortgages on the secondary market.

«University administrators are the equivalent of subprime mortgage brokers,» he says, «selling you a story that you should go into debt massively, that it's not a consumption decision, it's an investment decision.

But by selling the subprime loans through the secondary mortgage market, the lenders were able to «offload» the risk associated with those loans.

And in a flashback to the subprime mortgage boom, P2P startups have begun bundling and selling off loans through securitizations.

«Isnâ $ ™ t the packaging of mortgages and selling them to investors one of the reasons we got into the subprime mess?

Big Wall Street banks package subprime mortgages into securities and sell them to hedge funds and institutional investors looking for high yielding assets.

Much like mortgages, subprime auto loans go through Wall Street's securitization machine: Once lenders make the loans, they pool thousands of them into bonds that are sold in slices to investors like mutual funds, pensions and hedge funds.

And, like subprime mortgages before the financial crisis, many subprime auto loans are bundled into complex bonds and sold as securities by banks to insurance companies, mutual funds and public pension funds — a process that creates ever - greater demand for loans.

2) Wall Street spends millions of dollars doing credit checks and filling out ISDA agreements before entering swap transactions with customers... and yet, no one blinked at the idea of selling a subprime borrower a receiver swap — allowing them to pay floating instead of fixed rates on their mortgage.

They allow traders to package emissions permits into complex financial products and sell them in bundles — much like they did with subprime mortgages.

Anyway, we're back at it again, except this time instead of subprime mortgages being sold to baby boomers it's $ 400 pants being sold to millennials.

(Bloomberg)-- U.S. prosecutors have abandoned their case against Angelo Mozilo, a leader in selling the risky subprime mortgages that fueled the financial crisis, after a two - year quest to bring a civil suit against him...

Because the interest rates on subprime loans were much higher than prime loans, subprime mortgages were «securitized» and sold on Wall Street.

But if you sold subprime, er, I mean, affordable mortgages, you had a helluva lot less competition so for years you could sell more mortgages and, in addition, charge higher fees.

During the boom, loan officers could make 2 to 3 times more money selling one subprime mortgage versus one prime mortgage.

If everyone is selling prime mortgages, there's more money in selling something more unique like affordable / subprime mortgages.

The reason the number of affordable / subprime mortgages skyrocketed during the boom was because lower lending standards mean more people can get mortgages and that means mortgage companies can sell more mortgages.

«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 terms.

Driven by Wall Street's demand for subprime loans to securitize and sell to investors, lenders sold high - risk products such as exploding adjustable - rate mortgages — loans with interest rates that could triple after two years — and liar loans, also known as stated income loans, which required little or no documentation about income, assets, or credit history.