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The Increase of Subprime Loans

By
Real Estate Broker/Owner with Berkshire Hathaway HomeServices Florida Realty 405188

Weston luxury homes, Cape Coral luxury homesAmerican lenders believe in second chances, reports Equifax Chief Economist Amy Crews Cutts, who notes that the rising number of subprime loans being issued are a reflection of this philosophy.

Equifax recently released its National Consumer Credit Trends Report that indicates loans being approved for consumers with a credit score below 620 are up from one year ago.

In the first 5 months subprime mortgages increased 30.5 percent for first mortgages. This just means some lenders will work with a low score borrower. Even though the number of subprime loans jumped by about one-third, they represent just a tiny slice of the mortgage market.

What does this mean for Weston luxury homes, Cape Coral luxury homes, and other similar markets? Find out more.

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