Sentences with phrase «subprime mortgage borrowers»

With some 5 percent of subprime mortgage borrowers facing trouble and global investors wondering if prime mortgages remain a smart investment, these are indeed challenging times for real estate.

Some subprime mortgage borrowers will get a private lender loan, clean up their credit and then refinance later.

Not exact matches

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

Such an outcome could prove to be a classic unintended consequence: Morneau's reforms — meant to reduce or contain the accumulated risk created by precipitously over-leveraged homebuyers — may unwittingly increase the overall systemic risk in the economy by driving red - lined borrowers to the sort of uninsured subprime mortgages that have proliferated in the shadow banking sector.

An alternative (read subprime) mortgage lender based in Toronto, Home Capital targets the self - employed, new immigrants and borrowers with minor blemishes on their credit histories who find themselves unwelcome at most banks.

Subprime mortgages disappeared following the financial crisis, but now they are coming back, with huge demand from both borrowers and investors.

The latest survey also provided some insight into mortgage standards for «subprime» borrowers.

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.

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.

In the recent case of subprime mortgages for example, many borrowers were unnecessarily steered to such mortgages because of easier underwriting guidelines and larger commission checks.

The latest survey also provided some insight into mortgage standards for «subprime» borrowers.

Nearly 90 mortgage lenders have formed an alliance to support passage of legislation to «reinvigorate» the Federal Housing Administration so it can provide safe and affordable financing for homebuyers, as well as a lifeline for subprime borrowers who are in trouble.

Following their experience with the mortgage crisis, banks can no longer accept the risks of lending to subprime borrowers.

>> >» Rather than go into foreclosure, eligible borrowers can refinance with FHA and lenders can voluntarily write down the outstanding subprime mortgage principal balances.»

As an alternative to foreclosure, eligible borrowers can refinance with FHA and lenders can voluntarily write down the outstanding subprime mortgage principal balances.

While many delinquencies have been caused by adjustable rate mortgages for subprime borrowers or with gimmicky features which caused payments to reset to unnaturally high levels, the rise in ten - year Treasury yields is a warning that a broader population of mortgage holders could face higher mortgage rates.

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

Borrowers refinancing into FHA from the subprime market are better off, even with slightly higher mortgage insurance premiums, because FHA insurance gives them access to substantially lower interest rates, and lowers their overall mortgage costs.

While credit scores of borrowers are generally better than subprime, certain attributes are similar, such as the inclusion of stated income loans, reduced - documentation loans and second - lien mortgages, creating a layering of risks similar to subprime securities.

And where do the leaders stand on the mounting danger from shadow lenders, the non-bank lenders tapping ultra-low interest rates to extend mortgages to subprime borrowers even the banks won't touch?

Source Capital Funding has helped hundreds of borrowers, mortgage brokers and real estate professionals to secure the subprime or hard money financing they need.

Unlike subprime lenders, FHA requires that borrowers demonstrate they can pay their mortgage by verifying their income and employment.»

Government mortgage programs offer competitive interest rates for borrowers who would normally have to refinance with a higher rate from a subprime lender because of their low credit scores.

Subprime borrowers paying off credit cards before they pay back mortgages Experian study reveals departure from past norms

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There are still a few brokers and subprime lenders that offer mortgages for bad credit borrowers.

Costly subprime mortgages are associated with borrowers who have poor credit, while «Alt A» loans in the recent past have included such toxic financial products as option ARMs and interest - only mortgages.

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.

Today, money borrowers are bombarded with terms such as prime mortgage rate and subprime mortgage rate.

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.

NEW YORK, June 26 (Reuters)- Delinquency rates are rising for so - called «Alt - A» home mortgages held by U.S. borrowers who are rated above the subprime category but below the more pristine prime borrower, said Standard & Poor's in a report on Tuesday.

Subprime mortgages are loans granted to borrowers with low credit scores — usually below 600 — who would not be approved for most conventional mortgages.

«The only anomaly we found was that higher TPR levels actually resulted in higher auto and mortgage delinquencies for subprime and near - prime mortgage borrowers, but we attribute this performance to the mortgage crisis and its impact on the payment hierarchy — many consumers facing foreclosure placed a higher emphasis on paying off their credit cards,» added Becker.

Many consumers are good borrowers that do not fit into a perfect box so non-prime mortgage loans become very appealing when subprime mortgage lenders get the flexibility they need from the banks to loosen lending standards.

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.

«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.

Borrowers once served by the Federal Housing Administration turned to subprime and Alt - A mortgages.

From the article: «Federal Housing Administration loans once served a broad spectrum of borrowers until the subprime mortgage meltdown came along and pushed lenders... View Article

Subprime mortgages are loans granted to borrowers with low credit scores (usually below 600), who would otherwise not be approved.

But much like the country's private lenders during the first several years of the present century, Fannie Mae and Freddie Mac's drive to increase profits helped create the housing bubble (thanks to lowered underwriting standards, approvals for subprime borrowers and the bundling of loans into mortgage - backed securities).

While this is a big issue for millions of borrowers, resetting subprime mortgages is just a single wave in an ocean of bad mortgage debt.

In late 2005, home prices began to fall, which led to borrowers being unable to afford their mortgages, defaulting on their loans, and subprime lenders filing for bankruptcy.

Lenders may voluntarily write down the outstanding subprime mortgage principal balances to a 97 percent or 90 percent LTV ratio depending on the borrowers» circumstances.

Unlike wild risk takers investing in subprime mortgages — low - quality loans to borrowers with iffy credit — Thornburg stuck to high - quality assets.

During the fourth quarter of 2009, the foreclosure inventory rate for prime loans reached 3.31 percent, FHA mortgage foreclosures were at 3.57 percent, subprime borrowers were at 15.58 percent and those in the VA loan were at 2.46 percent.

To resolve this problem, HUD says that «lenders may voluntarily write down the outstanding subprime mortgage principal balances to a 97 percent or 90 percent LTV ratio depending on the borrowers» circumstances.»

WASHINGTON — The Bush Administration today announced additional mortgage assistance for subprime borrowers who are at risk of foreclosure.

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

In fact, after the subprime mortgage crisis of 2007 - 08, they became known as «liar loans,» because borrowers and lenders were able to exaggerate income and / or assets to qualify the borrower for a bigger mortgage.

Subprime mortgages are offered to borrowers who have lower credit ratings and FICO credit scores below about 640, though the exact cutoff depends on the lender.