Subprime Lendingsub-prime loans
subprime_risk">Definition des Subprime-Risikos
Subprime means the creditworthiness of certain borrower who have diminished their creditworthiness and have a greater exposure to loss than first-class borrower. 6 ] When humans become commercially engaged, logs are kept of their borrowings, income and lending record. Creditworthiness is the name given to this; although it is subject to data protection legislation, the information is easily accessible to those with a need for knowledge (in some jurisdictions, lending requests explicitly allow the creditor to gain control of such records).
The subprime borrower has a rating that could include: excess indebtedness (the known level of personal or familial earnings is unlikely to be sufficient to cover the cost of life + interest + repayment), a record of delayed or sometimes lost payment so that the term of the facility had to be prolonged, any judgment such as order to pay payment or insolvency (sometimes known in the UK as counsel courts or CCJs).
In Canada, the subprime markets have not been as successful as in the US where the overwhelming bulk of third party loans were wrapped and subsequently resold to an investor who often did not fully appreciate the risks involved. In order to prevent high early-mortgaging payments, many subprime borrower took out floating-rate loans (or ARMs) that gave them a lower starting interest rat.
A $500,000 credit at a 4% interest for 30 years is equivalent to a monthly payout of approximately $2,400. However, the same 10% loans for 27 years (after the expiration of the settable term) corresponds to a disbursement of $ 4,220. An interest rise of 6 percentage points (from 4% to 10%) led to an interest rise of just over 75%.
18 ] This is all the clearer when the life-cycle costs of the credit are taken into account (although most individuals want to regularly re-finance their loans). On the other hand, the higher interest of 10% would cause a life cycle costs of $ 1,367,280. Skip up ^ The report on the investigation of the financial crisis (PDF).
The National Commission on the Causes of the Causes of the Causes of the Financial and Economic Crisis in the United States. Hop du printemps ^ Lo, Andrew W. "Reading About the Financial Crisis : Subprime relates to the loan perceived by various agencies such as FICO, Equifax and Experian to determine the loan perceived by the mortgagor.
Premier borrower class borrower are designated as the " premier ", therefore the concept of " premier rates " relates to the interest rates for lending to such persons with low exposure to counterparty risks. Accordingly, subprime borrower have lower ratings and a higher probability of failure than first class borrower. This group has traditionally been identified as a borrower with FICO ratings below 600, although this has differed over a period of times and given conditions, making it more difficult to establish what subprime really means.
Leap up ^ "Subprime loan". Skip up to: abc Lemke, Lins and Picard, Mortgage-Backed Securities, Section 3 (Thomson West, 2013 ed.). Skip up ^ Goolsbee, Austan (2007-03-29). "Involuntary mortgaged property has opened the door to many of the excluded." Skip up ^ "FDIC-Guidance for Subprime Lending". Hop up, demandank y.
Teen myths about subprime mortgages filed 2013-06-05 at the Wayback Machine.... Skip to top ^ "Student Loan Debt Exceeds One Trillion Dollars". www.NPR.org. Skip up to: a c Martin, Andrew (8 September 2012). ..many borrower are fighting to repay their study credits, and the collections agency is overdue.
Skip up ^ Lemke, Lins and Picard, Mortgage-Backed Securities, Section 2 (Thomson West, 2013 ed.). Hop up ^ Alt-A Mortgages. Leap to the top ^ "How hard is subprime existence? Leap up ^ Ben S. Bernanke (May 17, 2007). Subprime Mortgages Exchange (speech). Leap up ^ "What subprime crises? Hop up ^ Greg McArthur; Jacquie McNish (2009-03-14).
"Canada's Filthy Subprime Secret." Hop up ^ Gad, Sham (2007-07-10). "Skinny on Subprime." Check out Subprime in Wiktionary, the free online lexicon. the subprime minions are back. "subprime lenders are in trouble". "Understand the subprime mortgage crisis." "The Subprime Lending." Subprime loans'. "Subprime Mortgages on the Way Up and Fall" (PDF).