Subprime

US top court broaches subprime crisis in property value case

US top court broaches subprime crisis in property value case

The US Supreme Court Tuesday heard arguments born out of the subprime mortgage crisis concerning how to estimate a property’s value when its worth has plunged. Benjamin Robers borrowed a total of $451,000 he never intended to pay back in a mortgage fraud scam in the midwestern state of Wisconsin just before the housing market […]

Are Subprime Loans Making A Comeback?

Are Subprime Loans Making A Comeback?

by Aaron Janus   Subprime loans make it possible for many homeowners to qualify for a mortgage and buy a home. In 2005, subprime loans also triggered a housing bubble that we are still feeling the effects of for nearly the last decade. Subprime loans are made to borrowers who are highest risk: either they […]

The Basics of Subprime Mortgages

The Basics of Subprime Mortgages

By E Singer   Unless you’ve been living in seclusion for the last twenty years, then you’ve probably heard of subprime mortgages at some point. But what is subprime lending and who are these loans meant for? How do these types of loans work? Moreover, what is the relationship between subprime loans and the financial […]

How You Could Profit From The Next Subprime Loan Crisis

How You Could Profit From The Next Subprime Loan Crisis

By David Goodboy StreetAuthority   We all remember the subprime mortgage crisis. The financial system was thrown into chaos, and many homeowners lost their overleveraged homes during these dark days. Fortunately, the vast powers of the Federal Reserve were summoned to help stabilize the housing market, and along with it, the entire economy. The Fed worked […]

Investors still see relative value in subprime mortgage bonds

Investors still see relative value in subprime mortgage bonds

By.Jacob Gaffney   Describing a conference in two words is becoming a bit of a thing. Yesterday, I described the feeling at the ABS East 2013 conference, held earlier this week in Miami, as one of subdued complicity. Analysts at Barclays (BCS) say it is more like “cautiously optimistic,” in an email titled, “Notes from ABS East 2013.” […]

JPMorgan May Pay $13 Billion To U.S. Over Subprime Mortgage Fiasco

JPMorgan May Pay $13 Billion To U.S. Over Subprime Mortgage Fiasco

  JPMorgan Chase is in talks with the Justice Department to pay $13 billion to the U.S. government over its role in the subprime mortgage fallout that led to the 2008 recession. The NY Times says, “It would be a record penalty that would cap weeks of heated negotiating and underscore the extent of the […]

Investors still see relative value in subprime mortgage bonds

Investors still see relative value in subprime mortgage bonds

By. Jacob Gaffney Describing a conference in two words is becoming a bit of a thing. Yesterday, I described the feeling at the ABS East 2013 conference, held earlier this week in Miami, as one of subdued complicity. Analysts at Barclays (BCS) say it is more like “cautiously optimistic,” in an email titled, “Notes from ABS East 2013.” Their […]

The Subprime Mortgage Market Is Heating Up Again

The Subprime Mortgage Market Is Heating Up Again

  Jeff Ferzoco / Flickr   America’s sub-prime mortgage market is beginning to reheat, leading investors to warn of the possibility of a renewed financial crisis. Demand for sub-prime mortgage bonds, which are not backed by US government-controlled mortgage lenders Freddie Mac and Fannie Mae, has surged since the start of last year, as yields […]

Subprime

Subprime Lending Subprime lending is back now but with a twist. Typically, they carry an interest rate that is sometimes as high as 10 percent, about three times the current average rate of a conventional 30-year-fixed rate mortgage. They also typically require a down payment of about 10 percent. A 10 percent down payment is […]