subprime


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Related to subprime: Subprime Lenders

sub·prime

 (sŭb′prīm′)
adj.
Relating to loans that have a high interest rate and high risk of default.

[sub- + prime (from the fact that loans with high interest rates are offered to nonpreferred or less creditworthy borrowers).]

subprime

(ˈsʌbˌpraɪm)
adj
(Banking & Finance) (of a loan) made to a borrower with a poor credit rating, usually at a high rate of interest
n
(Banking & Finance) a loan made to a borrower with a poor credit rating

subprime

A term used to refer to any loan or credit product with terms and conditions that are less stringent than normal. For example, a mortgage product designed to be made available to customers with poor credit histories may be described as a subprime mortgage.”
References in periodicals archive ?
Before any conforming lender moves forward with a subprime program, it must carefully examine its policy on brokering-out, the cash flows involved, and what types of control it is willing to exert on its sales force to maximize profit opportunity for the company, not just its sales force.
Many studies of the housing market collapse of the last decade, and the associated sharp rise in defaults and foreclosures, focus on the role of the subprime mortgage sector.
Before the subprime mortgage boom, FHA loans were an important source of credit for first-time home buyers and borrowers with less than prime credit ratings.
Davis Polk achieved a major victory on behalf of Morgan Stanley and certain of its officers and directors in a Section 10(b) shareholder class action arising from Morgan Stanley s 2007 subprime write-downs when the Second Circuit affirmed the district court s April 2011 and January 2013 orders dismissing all of plaintiffs claims.
Subprime mortgages have been getting a lot of attention in the United States since 2000, when the number of subprime loans being originated and refinanced shot up rapidly.
Eighteen months after the first lawsuits relating to subprime mortgage lending were filed, the claims frequency from subprime claims already has passed the number of lawsuits filed during the savings & loan crisis of the early 1990s.
Asian lenders have so far avoided the massive write-downs that crippled Western rivals such as UBS and Merrill Lynch, but Mizuho is one of the region's bigger subprime casualties.
subprime mortgage turmoil in the year ended March 31, sources familiar with the matter said Thursday.
It is likely that the number of loan modifications for subprime ARMs [adjustable-rate mortgages] will continue to grow through the outreach efforts of the industry.
Should "borrowers beware" of subprime mortgages, which lead to "an endangered dream" of homeownership, as headlines in the Washington Post and Wall Street Journal recently said?
Synopsis: Many Americans do not share Fed Chairman Ben Bernanke's recent optimism that the subprime mortgage market meltdown will be contained according to a new May Experian/Gallup Personal Credit Index (PCI) poll.