Subprime Loans: Theyre Baaaack
Interviews with Compass, Mark Spain Real Estate, and Carrington Real Estate
(Boonton, NJ, March 29, 2016) — The liar loans of a decade ago are gone, but subprime mortgages are gradually returning, according to credit reporting agency Equifax.
In the first 10 months of 2015, there were 312,000 new subprime mortgages originated for a total of $50.7 billion, Equifax says. That’s a 45 percent increase in total balances from the previous year.
Equifax defines a subprime borrower as a homeowner with an Equifax Risk Score of 620 or lower.
"Credit standards are becoming more accommodating to meet market demand," says Amy Crews Cutts, chief economist at Equifax. "At the same time, lenders are focusing more attention on evaluating consumers’ ability to repay."
Developments in the home-loan market are covered regularly in the pages of Real Estate Broker’s Insider.
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