Lenders Abolish the Subprime Mortgage Loan
Previously, I’ve written about subprime mortgage loans, as they relate to the current spike in home foreclosures we are seeing. I even posted a tutorial over at Home Buying Institute to explain the subprime mortgage in greater detail.
Now it seems that subprime lending will be a thing of the past for some major lenders.
A recent article on the Wall Street Journal’s website (WSJ.com) explains how major lenders are phasing out their subprime mortgage products. The Journal explains that: “Some lenders are eliminating what until recently was the most popular type of home-mortgage loan for subprime borrowers, or borrowers with weak credit histories.”
This development comes at a time when lenders are under intense scrutiny for their subprime lending practices, as those practices related to borrower default and foreclosure trends.
I will monitor all of this and keep you posted on future developments in the world of the subprime loan.