Subprime loans

It seems everywhere you look or read, there are issues with subprime lenders.

Now I thought it was loans at interest rates below the "prime" lending rate-D'OH!

It seems the unofficial definition-there is no official definition-is a loan to a brower with a sub 620 FICO score-"someone with bad credit"

The subprime interest rates are usually 2-5 points higher than a prime loan -this makes a 5% home loan into a 10% home loan.

It is usual for the rate to be fixed for the first 2-3 years and then it switches to adjustable.

Basicly, the issue is a lot of high risk loans were taken out and are now defaulting.

This is the big subprime meltdown everyone seems to be talking about.

As usual, exploit the more and kick them when they are down.

The economy is a tragedy right now and obviously the ones impacted the quickest and harshest will be those living paycheck to paycheck.

New home construction is down 18% this year on top of last years 13%. That is a 31% decrease.

This effects so many other jobs it isn't even funny. I just recently became aware of this because of my line of work.

I am glad I didn't buy a house when I was getting many calls almost daily from brokers practically begging me to do so a couple of years back.

Make em' feel safe and then pull the rug out from under them.

Nice people...................... Bankers and such.

World Markets Continue their Slide

US Depression Tremors: Subprime Lenders in Meltdown

Please review those on-going discussions and add you comments there.

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