Knowledge Tree
subprime lending
Facts (6)
Sources
Predatory Lending Practices - House.gov commdocs.house.gov 3 facts
referenceThe U.S. Department of Housing and Urban Development released a study in April titled 'Unequal Burden, Income and Racial Disparities in Subprime Lending in America' which analyzes disparities in subprime lending.
claimSubprime lending is distinct from predatory lending, as subprime loans are provided to individuals who may not qualify for prime or 'A' credit ratings due to life events such as job loss, medical bills, or missed mortgage payments.
referenceMs. Borrelli stated that a study conducted by the Research Corporation (SMR) utilized 1998 Home Mortgage Disclosure Act (HMDA) data to analyze subprime lending information.
Fair Lending Enforcement Program - Department of Justice justice.gov 2 facts
claimSome subprime lenders market to investors by emphasizing that many of their borrowers possess 'A' level credit or credit scores just slightly below that level.
measurementIn 1998, subprime lending accounted for 51% of home loans in predominantly African-American neighborhoods, compared to 9% in predominantly white areas.
The Impacts of Individual and Household Debt on Health and Well ... apha.org Oct 25, 2021 1 fact
referenceExperian published the '2021 subprime lending trends: insights into consumers and the industry' report in May 2021.