Sub-Prime Mortgage Lenders

Lenders Nationwide offers access to Sub-Prime Mortgage Lenders, who offer the best hard money loan programs in the country. Tap the equity in your home and partner with the top mortgage lenders online. Get cash out with your home equity for debt consolidation or simply accessing additional cash. 2nd mortgage loans can be a valuable tool for many purposes. Get a traditional Rate & Term Refinance mortgage or consider a Cash-Out Refinance while the interest rates are still below seven percent nationally.

Find the Sub-Prime Mortgage Lenders in your neighborhood! Search for lenders and shop interest rates with the top home mortgage lenders online. Get free quotes for mortgage refinance and with programs for bad credit, rate and term, debt consolidation and cash out.

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Sub Prime Lending News

Federally regulated banks started the week with new rules governing how they write subprime loans. Critics consider the rules too-little too-late because they don't apply to mortgage brokers and lenders that are not federally regulated. Also an estimated 2 million homeowners, many of them saddled with subprime loans they can't afford, are already in or destined for the foreclosure pipeline.

Effective immediately, the "Statement on Subprime Mortgage Lending" is the work of the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision and the National Credit Union Administration, federal monetary system regulators.

According to a recent article by Broderick Perkins, “The new rules were spawned by waves of failing subprime mortgages. “

In most cases, sub-prime mortgage loans cost more than traditional loans, but they are intended for borrowers who pose a more significant risk to lenders, typically because of past credit problems like a bankruptcy. Sub-prime loans do offer financing for borrowers who otherwise would not qualify to purchase a home.

Unfortunately, in numerous documented class action suits, state-filed cases and other claims, too many subprime mortgages became predatory with high costs and pre-payment penalties. Other financing reports indicated that borrowers of those same groups could qualify for prime loans but many unscrupulous advisors steered these borrowers towards bad credit mortgages instead.

Many lenders have already tightened underwriting standards and not only for subprime loans, but also so-called non-prime mortgages which were the target of previous regulatory monitoring. Nevertheless, even as the Feds move to tighten regulations, subprime mortgages continue to flourish, according to the Center for Responsible Lending.

Last week, just days before the Feds released the new rules, the Center released a study of mortgage-backed securities consisting primarily of mortgages made in 2007 which contained high levels of subprime loans with risky terms.

The Center said on average, 77 percent of the loans included in the subprime securities came were adjustable rate mortgages (ARMs) and nearly half came with large scheduled interest rate increases. Many loans with prepayment penalties and others made without fully documenting borrowers' incomes also comprised a chunk of the loans.

HousingPredictor.com says in "Foreclosures Will Affect 2 Million Homeowners," new federal regulations won't be enough to stem the tide on subprime foreclosures.

The Federal Reserve’s subprime rules include:

Lender mandates include:

• Curtailing predatory lending. Loans should be based on the borrower's ability to pay rather than the foreclosure or liquidation value of the home. Lenders should not induce borrowers to become serial refinancers for financial gain nor engage in fraud or deception to conceal the true nature of the borrower's obligation.
• Tightening underwriting controls. Loan approval should be based on the borrowers ability to pay the loan based on the fully indexed rate, rather than the starter rate.
• Offering workouts. Where warranted, lenders are encouraged to offer struggling borrowers loan modification or workout arrangements.