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.
Mike "Mish" Shedlock