One can only speculate when the
subprime crisis will end.
That's what happened on one important issue in this year's experimental annual session: Legislators adjourned Friday without giving stronger protection to people who finance their homes with
subprime mortgages.
Gibson said that he blames the decline in the real estate market on the proliferation of
subprime loans.
People with "
subprime" credit scores are reportedly getting approved for Apple's (AAPL) new credit card, CNBC's Hugh Son reported on Friday.
In the Fall 2018 issue, I discussed a paper that found that the cumulative losses (through 2013) on all
subprime residential mortgage-backed securities (MBS) issued between 1987 and 2008 were dramatically lower for
subprime AAA-rated MBS (0.42%) than all AAA-rated MBS (2.3%).
At the onset of the last housing crisis, it was widely believed that the lenders who extended
subprime mortgages and the homeowners who had taken out those loans were responsible for the housing boom, bust, and ensuing economic crisis.
Growing numbers of small
subprime auto lenders are closing or shutting down after loan losses and slim margins spur banks and private equity owners to cut off funding.
Delinquent
subprime loans are nearing crisis levels at auto-finance companies in the US, according to Bloomberg.
subprime auto ABS delinquencies reached back in February, though Fitch Ratings says that rising delinquencies are not the concern foremost on the minds of investors.