Mortgage Loan Companies Bring Back Subprime

Mortgage loan companies recently started originating subprime loans again, which could be a sign that the economy has not fully recovered. During the financial crisis of the 21st century, millions lost their homes to foreclosure and this was largely blamed on lenders that extended credit to borrowers with poor credit and high debt-to-income ratios in the form of the subprime mortgage loan. In recent years few have spoken of the “toxic” loans that led to the recession, but they are making a comeback. People fear these mortgage loans will cause yet another crisis, and with the economy still recovering, they fear the economic fallout could be far worse. “The economy has only recently gotten a little better and still millions are out of work,” said one man who is not alone in this sentiment. A woman in her early 30s shared a disparaging story about her difficulty finding a job after graduating from college with a degree in finance from a reputable university. The media often talks about the vast number of Millenials, educated individuals who are in their late 20s or early 30s, who live at home with their parents, as they cannot find adequate jobs to support living on their own. The job market has finally started picking up a bit and these people are looking for homes. A large number of those looking for homes have little credit and numerous others have poor credit as a result of the difficult times they endured in recent years. Read more at http://guardianlv.com/2014/08/mortgage-loan-companies-bring-back-subprime/#GJlec8y7GE21oqgb.99