Comments on: Are subprimes still lending?

Question: Are subprimes still lending?

tesseract420 — Sun, 03 Feb 2008 23:23:42 -0800

Subprimes still lending?? I thought that the subprime loan market was out of business. Why am I getting multiple calls from Household Finance claiming that they have "new programs" trying to lend me money I don't need? ps I don't have a loan with Household Finance. I don't know if they're trying to make a home loan or a consumer credit facility.

By: twiggy

twiggy — Mon, 04 Feb 2008 00:48:50 -0800

Subprime lenders are not all out of business. The market isn't out of business at all, and many companies have survived the fallout. Household (owned by HSBC) is the main one that will likely remain standing after it's all over because HSBC bought it several years back. With the world's largest bank behind it, Household has the ability to weather the storm (assuming HSBC doesn't dump it due to the poor economic conditions at the moment).

If you're just curious about the answer to your subprime question - then that should cover it. However, if you're posting because you are annoyed by the calls - just ask them to put you on their internal do not call list. They must oblige, legally.

By: grouse

grouse — Mon, 04 Feb 2008 02:22:29 -0800

There's always going to be money to be made by charging usurious rates to people with subprime credit. Recent events won't change that, but they might reduce the amount of money being doled out and end silly things like liar loans.

By: Thorzdad

Thorzdad — Mon, 04 Feb 2008 04:28:34 -0800

Are you positive they are offering sub-prime products to you? I get 3 or 4 offers from Countrywide every week. They all seem to be variations on either home equity loans, or "fixed" ARM refi's.

By: TomMelee

TomMelee — Mon, 04 Feb 2008 06:59:29 -0800

Avoid these mothraflockers at all costs. They are predatory. We're dealing with them right now with one of our partner families. They are the scum of the earth.

By: 45moore45

45moore45 — Mon, 04 Feb 2008 07:02:03 -0800

Yea, the creative crappy deals are coming out of the wood work now. I found after I notified the credit bureaus (all 3 of them) not to sell my personal information that I rarely get those calls or mailings. I also told my current mortgage lender not to sell my information. There is some tiny print disclosure about your privacy that comes with your creditor information--take advantage of that and notify them you don't want them selling your data to their "valued partners". It cuts down on the junk mail and junk calls by about 95%.

By: panamax

panamax — Mon, 04 Feb 2008 09:09:06 -0800

Loans are still available but equity requirements are going up.

HFC would be more than happy to take an equity position in your house, up to ~50% of its estimated value.

Also, are you sure you're subprime (credit score in the low 600s)?

By: gjc

gjc — Mon, 04 Feb 2008 10:49:32 -0800

Subprime is a type of loan, not necessarily a type of company.