subprime

(redirected from Subprime loan)
Also found in: Financial.
Related to Subprime loan: CDO, Subprime mortgage

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 ?
They are Paul Menefee, who served as the head banker of Barclays' subprime RMBS securitisation unit, and John Carroll, who worked as the head trader for subprime loan acquisitions Richard Donoghue, United States Attorney for the Eastern District of New York, said: "This settlement reflects the ongoing commitment to hold banks and other entities and individuals accountable for their fraudulent conduct."
They are Paul Menefee, who served as the head banker of Barclays' subprime RMBS securitisation unit, and John Carroll, who worked as the head trader for subprime loan acquisitions Richard Donoghue, United States Attorney for the Eastern District of New York, said: "This settlement reflects the ongoing commitment of the Department of Justice, and this Office, to hold banks and other entities and individuals accountable for their fraudulent conduct."
Carroll, of Port Washington, New York, who served as Barclays' head trader for subprime loan acquisitions.
Subprime lenders/subprime loans--In general terms, a subprime loan and/or subprime mortgage is a financial instrument made available to those with low credit scores, who are perceived to represent a relatively higher financial risk.
When lending standards tightened after the subprime market crashed in the middle of 2007, three types of potential borrowers could no longer obtain a mortgage loan: borrowers who would have gotten a subprime loan had the subprime market continued to exist, borrowers with subprime mortgages who needed to refinance into loans with better terms, and borrowers who could not afford large down payments but were otherwise creditworthy.
Once they cleared the loan-approval hurdle, black and Latino applications were 2.4 times more likely to result in a subprime loan than were whites.
It also invests in subprime residential loans held for resale; and is involved in subprime residual mortgage backed trading securities related to subprime loan origination operation and whole loan purchase and securitization activities, as well as engages in the management of residential assets.
The market for mortgagebacked loans shut down during the crisis, after the "toxic" subprime loan disaster in America left them with a terrible reputation.
subprime loan and were almost 20% more likely to go into foreclosure,
A subprime loan is generally one in which the borrower has blemished credit, usually measured by a FICO credit score.
At first glance, the interest rate at origination is similar to LTV and FICO score in having a strong statistical and economic effect on both prime and subprime loan defaults in each origination year.
(9) In a subprime loan, a borrower offsets this credit risk by paying higher interest rates.