Sentences with phrase «subprime loan market»

Credit - Aid Corporate Pro-1000 Dramatically Improves Potential Borrowers» Options in the Collapse of the Subprime Loan Market

Bonnie Faulkner: It looks like the Bank of America is going back into the subprime loan market, albeit in league with U.S. Government.

Not exact matches

Just like subprime mortgage lending dragged so many American homeowners underwater during the housing crisis, some private lenders aggressively marketed their loans to students who weren't financially fit to support them.

Trillions of dollars in student and auto loan industry (auto loan now has subprime loans, just like back in 2007/2008 with the housing market) could cause the market to come crashing down again.

The vast majority of subprime loans were financed by investors through placing the loans into securities that were sold onto the market.

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.

Now that the loans are beginning to deteriorate and subprime buyers are no longer in the market or tapped out, we're beginning to see the real picture — which is much less rosy than it seemed just a year ago.

There's a section of the auto - loan market — known in industry parlance as deep subprime — where delinquency rates have ticked up to levels last seen in 2007, according to data compiled by credit reporting bureau Equifax.

We're thinking about the time Wall Street banks colluded on rigging prices on the Nasdaq market; or the time they rigged their research departments and told us to buy stocks that they were secretly callings dogs and crap; or the time they got S&P and Moody's to give them triple - A ratings on subprime pools of debt while keeping it a secret that they had internal reports showing the loans didn't meet their origination standards — and then they went out and secretly shorted that debt while continuing to sell it to their customers as a good investment.

Benjamin Tal's (CIBC's Deputy Chief Economist) following statement, in the Financial Post, helps to clarify what a subprime mortgage can mean in Canada: «But remember subprime can be someone like a plumber,» he said, referring to self - employed workers, a segment of the market that Canada Mortgage and Housing Corp. has mostly abandoned when it comes to backing loans.»

«The Big Short,» a comedy / drama about a Wall Street wild man who cashed in on the housing market and defaulting subprime home loans.

Adapted from Michael Lewis's bestselling book The Big Short: Inside the Doomsday Machine, Adam McKay's stylized comedic take on the international banking collapse of 2007 - 08 nerds up Steve Carell, Ryan Gosling, Brad Pitt and an Oscar - baiting Christian Bale as real - life money - managing eccentrics who, independently, come to realize a market based on subprime loans is going to tank.

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.»

Webmasters & Bloggers: You can link to this page by copying and pasting this code < a href ="http://www.fhaloanpros.com/2008/08/subprime-loans-displaced-in-new-mortgage-market/"> Subprime Loans Displaced In New Mortgage Market

And though the subprime lending market seemed to disappear overnight, some FHA loan requirements still invite borrowers with moderate incomes and small down payments.

A sharp increase in loans payments that are 90 days or more delinquent is thought to be behind the actions which, after several years of record subprime loan originations, is leading some market observers to talk about another financial bubble.

I believe they will still do that, largely because of the effect that falling housing prices will have on the credit of the residential mortgage market, and not just Subprime, but Alt - A, and Prime loans as well.

To ensure that the housing market continues to recover from the effects of the subprime debacle and the ensuing economic downturn, Congress has taken swift action in the Continuing Resolution to extend single family loan limits for the Federal Housing Administration and Fannie Mae and Freddie Mac through the end of fiscal year 2011.

The proximate cause of this sell - off is a reappraisal of risk in the credit markets, starting first at subprime but now having spread to the riskier parts of corporate credit, namely high - yield bonds and loans to finance buy - outs.

I wouldn't call these loans subprime just yet though, because a steady income stream is pretty much mandatory, but I feel like tendencies are pointing to the idea that banks might start tapping into the subprime market sooner or later.

Third - quarter reports show subprime vehicle loans represent a smaller percentage of the auto loan market compared to the past five years.

The subprime and private money markets change frequently, so we suggest discussing your eligibility for a second chance loan now while the credit standards are more relaxed.

But blaming low - income families and casting them as unfit to own a home ignores decades of successful mortgage lending before the subprime boom — before reckless underwriting and aggressive marketing of unsustainable loans became common financial industry practice.

Make no mistake, the likelihood of seeing subprime loans and the predatory products in years past will likely never come into the market again, and rightfully so.

The study noted that delinquency rates for online loans have risen, and drew a parallel with rising late - payment rates in the subprime mortgage market between 2001 and 2007.

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.

The subprime market is the industry for borrowers who have less than ideal credit and need to take on a loan for emergency financial situations.

For example, from years 1996 to 2000 subprime loans accounted of only 9 percent of the total loan origination market.

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

So today, the big players in the secondary mortgage market (like Freddie Mac) have changed their tune regarding subprime loans.

Subprime loans definitely played their part in the entire credit crunch and housing market crash but at the same time people must be accountable for their actions.

Money - market funds, which are big buyers of commercial paper, are spooked by possible contagion from subprime mortgages, or risky home loans granted to low - credit home buyers, and are shunning commercial paper backed by assets.

Since that market is so tempting, big banks devised a system that allows them to fund subprime loans without actually issuing them.

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.

«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.

So this is my last addition to the subprime market, are self employed individuals who are significantly overstating their actual income to qualify for their current debt loan, plus the new mortgage payment.

Al Bowman, president of Mortgage Commentary Services in Tampa, Fla., said he believes the resurrection of the «subprime mortgage market» (for those with poor to bad credit) is driven by rising property values and Wall Street's willingness to buy the loans.

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.

From Black Monday, Oct. 19, 1987, to the September 2008 crash caused by U.S. financials» exposure to toxic subprime loans and credit default swaps, it's no wonder that, when autumn nears, so do investors» fears of stock - market routs.

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.

With so much press fixated on the shortcomings of the subprime market and the loans which were spun off in that market, I suspect the more stable FHA backed loans will once again move to the forefront as a viable alternative, even with the cost of mortgage insurance.

The Wall Street subprime loan crisis and bankruptcy of Lehman Bros., real estate crashes in Ireland and Spain, the solvency scare of Greece, and three separate bear market declines in mainland China equities — repeat, three — all clawed at equity prices around the globe.

Their actions came in response to a significant loss of market share, and it is this loss of market share that motivated them to take on more subprime loans.

It's about to get more difficult to qualify for a FHA home loan, often considered the replacement loan for the collapsed subprime market.

Веfоrе thе real estate market crash аnd thе rесеnt economic depression, subprime lenders offered mаnу loans tо borrowers wіth bad credit.

The FHA has been insuring mortgage loans for low and moderate income families since the depths of the Great Depression, but these loans became unpopular with the advent of the subprime market.

Unfortunately, the lower scores of African Americans and Latinos are not a surprise, both because of the legacy of discrimination and because these groups have been disproportionately affected by predatory credit practices such as the marketing of subprime mortgages, overpriced auto loans as well as higher foreclosure rates, all of which damage their credit history.

For one thing, these groups are already disproportionately affected by predatory credit practices, such as the marketing of subprime mortgages and overpriced auto loans targeted at these populations.11 As a result, these groups have suffered higher foreclosure rates.12 African Americans and Latinos also suffer from disparities in health outcomes, and as discussed in Section IV of this testimony, health care bills are another source of black marks on credit reports.

Fratantoni adds that there has been a more growth in the subprime market than in the prime market simply because prime borrowers always have been able to get loans.

Ratings agencies have been viewed as one of the means for increasing information available in the market, but Moody's said this had proved «somewhat unrealistic when the incentive structure of (subprime) loan originators, subprime loan borrowers and market intermediaries also shifted in favour of less information».