Sentences with phrase «subprime mortgages»
"Subprime mortgages" refers to loans given to people with low credit scores or who may have trouble repaying them. These loans come with higher interest rates and are considered riskier for lenders. Full definition
What is this so - called subprime mortgage crisis I keep hearing about on TV?
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At the peak of the housing bubble ten years ago, there was about $ 1.3 trillion worth of subprime mortgages in the financial system.
These days, nearly everyone speaks poorly of subprime mortgage loans.
In fact, we are planting the seeds for the next crop of subprime mortgage lenders right now.
Some investors did that and noticed the problem with subprime mortgages in 2006 and were able to avoid risks and even earn profits from it.
That set off a collapse in the market for subprime mortgage securities, a crisis that nearly brought down the financial system.
As a result, mortgage rates provided by subprime mortgage lenders will be much higher than those at standard lenders, all else being equal.
In 2006, approximately 40 percent of interest - only and adjustable loan mortgages were classified as subprime mortgages.
The concept of subprime mortgage lending was born during the housing boom that started toward the end of the 1990s.
But other economists say that the very low short - term rates made adjustable - rate subprime mortgages, those with the worst default rates, more attractive than they otherwise would have been.
I've been on the sidelines through the entire subprime mortgage mess because I have a 15 year fixed mortgage.
The obvious advantage of the expansion of subprime mortgage credit is the rise in credit opportunities and homeownership.
When subprime mortgage lending was booming from 2003 to 2006, so were purchases of home - related goods.
These days, lenders have started to offer subprime mortgage loans again, but the process is much longer requiring more documentation and lenders must verify that borrowers can pay off the loan.
Hopefully, we've learned our lessons about subprime mortgages and snake - oil brokers who promise you can afford a house when you can't.
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.
The recent failure in the nations banks was mostly brought on by the many subprime mortgages that were made.
The price increases are different from the bubble period, when subprime mortgages led to a housing bust.
There were prime borrowers who were sold subprime mortgages simply because there was an incentive for the broker to do so.
If you are, look at secured credit cards, secured loans and even subprime mortgage lenders to explore the options that are available.
First, most subprime mortgages were designed in a way that created rollover risk.
In the beginning it was mostly the specialty subprime mortgage companies that made these loans.
This concept sounds good but will not help subprime mortgage holders.
«Millennial» is the greatest insult someone who crashed the modern economy via subprime mortgages can call another person.
In 2003, with interest rates at historic lows, investor demand for high - yielding subprime mortgages started heating up.
With the rapidly rising home prices, subprime mortgages became more popular because people wanted to borrow more and more people wanted to borrow.
In it, he asked banks to match funds to purchase subprime mortgages.
The problem of subprime mortgages began in part because the government tried to increase homeownership for poor people and minorities by enabling private entities to offer more mortgages without assuming the risk.
I don't dive into why subprime mortgages expanded or lending standards fell.
Providing subprime mortgages — knowingly giving people the ability to get a house they couldn't afford — increased homeownership rates.
Today, subprime mortgages represent the fastest growing segment of consumer finance.
The reason is that sovereign debt is a bigger problem than subprime mortgages ever were.
First, we'll need to define subprime mortgage.
Be sure to talk to multiple subprime mortgage lenders that have access to private money programs.
While most are honest, some are the same people who not long ago were promoting fraudulent and inappropriate subprime mortgages.
Either way, the increase in subprime mortgages meant people could borrow a LOT more money to chase homes, if they wanted to anyway.
During the boom, loan officers could make 2 to 3 times more money selling one subprime mortgage versus one prime mortgage.
Among the industries that bear the greatest regulatory oversight is financials, which has seen a disproportionate amount of scrutiny in recent years, especially following the 9/11 attacks and subprime mortgage crisis.
No, it has nothing to do with subprime mortgages or bloated home equity balances.
In other words, they offered subprime mortgage loans to subprime borrowers, usually with a much higher interest rate for the borrower... and higher profit for the lender.
That crunch affected prime mortgages as much as subprime mortgages.
The interest rates for subprime mortgages are higher than for traditional, or prime, mortgages, but how much higher can vary a great deal from lender to lender.
In 2005, subprime mortgage lending hit an all - time high, arguably leading to the 2008 financial crisis.
The inherent problem in offering subprime mortgages is that the very people who need them are the same individuals who will probably have the most trouble making their mortgage payments each month.
There were plenty of warnings about subprime mortgages and risky investments — years of them.
There is also more government regulation involved in subprime mortgages, helping ensure that they're better controlled than they once were.