Pennsylvania Subprime Loan Lawyers

Subprime lending is the practice of granting a loan to a borrower at a higher rate than the current prime rate. The term "subprime" refers to the credit status of the borrower, rather than the interest rate on the loan. Subprime loans are given to borrowers with compromised credit histories or those borrowers that are considered high risk.although a recent study by The Wall Street Journal found that in 2006, 61% of subprime loan holders actually had credit scores high enough to qualify for loans at the prime rate.

Subprime lending is also known as:

• B-paper lending
• Near-prime lending
• Second chance lending

Subprime lending is a highly controversial and highly risky practice. Subprime lending is risky for both the borrower and the lender due to the combination of high interest rates, poor credit history and adverse financial situations associated with subprime applicants.

Subprime loans can include:

• Mortgages
• Auto loans
• Credit cards
• Personal lines of credit
• And others.

The logic behind subprime lending is somewhat lacking, offering a high interest loan to a risky borrower almost seems like a disaster waiting to happen. Subprime lenders have been accused of predatory lending - deliberately lending to borrowers who could never meet the terms of their loans inevitably leading to default, seizure of collateral and foreclosure.

Subprime loans and predatory lending have become a rising problem and the cause of many of the recent housing foreclosures. With foreclosure rates at an all time high, we have discovered, case after case that many are traced back to subprime loans and predatory lending.

If you have been the victim of a subprime loan or predatory lending, please call the Pennsylvania predatory lending lawyers at Anapol Schwartz for your free consultation.

CALL TODAY 866.735.2792