Subprime loans are back — with a new name
These mortgages, aimed at low-credit-score borrowers, are marketed as 'nonprime' loans.
By MSN Real Estate partner 21 hours ago
Bill Dallas, whose last two subprime lenders went bust during the global credit crunch, pledges to get it right this time around.
Dallas, 58, plans to offer the loans through his new company, NewLeaf Lending in Calabasas, Calif., this year. He's one of a growing number of executives striving to resuscitate the market, which six years ago crippled the global economy, with a revamped subprime product.
Gone are the days when lenders handed out mortgages without requiring documentation and down payments. Today's purveyors of subprime call the loans "nonprime" and require as much as 30 percent down to safeguard their investment. And they see a big opportunity for growth as tougher federal lending standards shut out millions of Americans with poor credit from the mortgage market.
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