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Thousands of people around the country have achieved homeownership by means of a residential mortgage loan classified as “subprime”

Thousands of people around the country have achieved homeownership by means of a residential mortgage loan classified as “subprime”

Subprime lending has been an engine of growth in home sales and, for the most part, subprime borrowers have met their mortgage loan payment obligations, and enjoyed their new homes.

Some subprime loans, however, prove impossible for borrowers to honor over time. Some subprime lenders, and https://yourloansllc.com/instant-cash-advance/ some loan officers in the course of marketing subprime loans, exploited borrowers – who may now face delinquencies in payment or foreclosure.

If you feel you have been exploited by a lender, contact the New Jersey Department of Banking and Insurance.

“Prime” and “Subprime” refers to the interest rate and terms of the loan based on the borrower’s credit history. Borrowers with the highest credit scores and cleanest payment histories present limited risk to the lender and are usually offered lower interest rates and placed in the “prime” market.

Borrowers with lower credit scores as a result of events such as late payments, court judgments and bankruptcies present a higher risk to the lender; and, therefore, are offered higher interest rates and are placed in the “subprime” market.