Sentences with phrase «subprime borrowers make»

Not exact matches

Subprime mortgages were home loans made to borrowers with weak credit and high debt.

The states of Illinois and Washington sued Navient in separate complaints on Wednesday, which also named Sallie Mae, for servicing problems and for subprime loans allegedly designed to make borrowers fail.

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.

According to TheStreet.com, «now that the subprime market is temporarily dead, FHA loans have become, in some respects, the «new subprime,» with borrowers making down payments as low as 3.5 %, and qualifying for lower rates than conventional borrowers.»

Borrowers can get a loan, use it to pay off their debt, then make payments on the subprime loan on time.

To make up for their poor credit standing, subprime borrowers pay higher interest rates.

One idea is to make NO loans available for subprime borrowers, thus solving the problem of undue lender risk.

Subprime loans are made to borrowers with a poor credit history and a high chance of defaulting on repayment.

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.

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.

The article states that «banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so - called subprime borrowers.

In August, when rising defaults on subprime home loans, made to borrowers with poor credit, began causing market turmoil, the dollar initially benefited from safe - haven flows as investors fled risk for U.S. Treasuries and Americans repatriated funds.

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.

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.

The issue with subprime loans was simple, the borrowers couldn't make their mortgage payments and the loans went into default.

Today, in 2011, you won't find any lenders willing to make subprime loans to poorly qualified borrowers.

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.

Have you noticed that mortgage brokers started making subprime loans because the credit worthy borrowers already had all the housing they needed for some time to come?

Aurora, which focuses on so called Alt - A loans, those made to borrowers with good credit, will continue to operate and may, over time, resume making subprime loans if the market for them revives, according to people briefed on the firm's plans.

Legislation making more FHA loans available to subprime borrowers facing foreclosure has strong support.

This guidance... underscores that the Federal Reserve and other banking regulators expect lenders to make sure subprime borrowers not only can afford their monthly payments while the introductory rate is in effect but also after the interest rate resets.»

CFPB proposes regulations on payday loans, other «debt traps» — Consumer bureau's rules aim to make small - dollar loans safer without cutting off emergency credit for subprime borrowers... (See Payday)

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.

The quarterly Federal Reserve survey of senior loan officers released Aug. 3 found that a significant number of lenders say their bank has actually made it somewhat harder for subprime borrowers to qualify for a loan.

Ben S Bernanke in a speech made at the Federal Reserve Bank of Chicago's 43rd Annual Conference in Chicago in May 2007 said: «Subprime mortgages are loans made to borrowers who are perceived to have high credit risk, often because they lack a strong credit history or have other characteristics that are associated with high probabilities of default.

Athas Capital Group in Calabasas began issuing subprime loans last April, offering mortgages at 9.75 percent for borrowers with a credit score of 550 to 599 who can make a 30 percent down payment.

The FHA has made this change to protect themselves from the higher lending risks that are associated with subprime (bad credit) borrowers.

A growing volume of subprime loans in recent years has resulted in record - level defaults as borrowers struggle to make the higher payments.

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.

Subprime mortgages are made to borrowers, usually at a higher interest rate, who do not meet traditional credit criteria or who have unconventional borrowing needs.

The bottom line: Subprime loans are back — for borrowers who can afford to make a 30 percent down payment.