Carrington Launches Subprime Mortgage Lending

Bad credit? 500 FICO score? Carrington doesn't give a damn.

Carrington Mortgage Services is launching a mortgage lending program that looks an awful lot like pre-crisis subprime lending, but the company claims that its new “non-prime” loans are much safer than the subprime loans of the mid-2000s.

In a release, Carrington quotes a study from Experian that states that 21.2% of Americans have credit scores below 600.

And those are the types of borrowers that Carrington is targeting with this new program.

Carrington’s loan program allows credit scores as low as 500. As stated above, “recent credit events” and a “history of late payments” are acceptable as well.

The loans are available for single-family homes, town houses and condos.

The program can be used for loans up to $1.5 million and cash-out refinances up to $500,000.

At this stage in the economy and after this massive runup in home prices, a company targets subprime.

Amazing.

Mike "Mish" Shedlock

Comments
No. 1-25
everything1
everything1

In part government doesn't care about individual debt, if people can get dollars any way they can and spend them into the consumer based economy then that's a win.

Sechel
Sechel

the only difference between now and 2007 is the pervasiveness and the interconnections. we could easily go back, nothing structurally was fixed.

KidHorn
KidHorn

We shall see. There's a big difference between now and 2007. In 2007, the housing industry, FED, etc... actually believed that it was impossible for housing to crash. Now, everyone is a lot more leary.

Blurtman
Blurtman

Just in time for President Eric “Place” Holder.

Maximus_Minimus
Maximus_Minimus

The trick is to sell the mortgage to one of government sponsored agencies, then it becomes the liability of even less responsible government. Neat if you can pull it off.

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