Subprime mortgages make a comeback
Crux note: They tell us the economy is booming. Stocks are trading near record highs, real estate is soaring, and unemployment is at a 17-year low. But something isn’t right…
Murders are hitting record highs in Baltimore… carjackings are at a 10-year high in Chicago… and one in 10 young adults said they were homeless in the past year.
Below, you’ll see that a catalyst of the “biggest financial disaster in a century” is making a comeback.
According to Porter Stansberry, this is no accident.
You can learn all about the biggest scam EVER perpetrated against the American people – and what you can do about it right here.
They were blamed for the biggest financial disaster in a century. Subprime mortgages – home loans to borrowers with sketchy credit who put little to no skin in the game. Following the epic housing crash, they disappeared, due to strong, new regulation, and zero demand from investors who were badly burned. Barely a decade later, they’re coming back with a new name — nonprime — and, so far, some new standards.
California-based Carrington Mortgage Services, a midsized lender, just announced an expansion into the space, offering loans to borrowers, “with less-than-perfect credit.” Carrington will originate and service the loans, but it will also securitize them for sale to investors.
“We believe there is actually a market today in the secondary market for people who want to buy nonprime loans that have been properly underwritten,” said Rick Sharga, executive vice president of Carrington Mortgage Holdings. “We’re not going back to the bad old days of ninja lending, when people with no jobs, no income, and no assets were getting loans.”