Subprime mortgage lending doesn’t exactly have the best track record. With the financial crisis of 2007 and 2008, subprime loans had a significant role in the geyser of default that caused harm to borrowers, lenders, and investors, according to HousingWire.
But, as Will Fisher, SVP of sales and marketing at Citadel Servicing Corp. (CSC), said “Subprime is not a four-letter word.” With the proper risk management, subprime loans, or as CSC now refers to them, non-prime loans, can prove useful.
Taking away the pejorative connotation that the term ‘subprime loan’ carried with it was the first step in changing the perception of these loans as a whole.
Sign-up for Pro Builder Newsletters
Get all of the latest news and updates.