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.


Mike "Mish" Shedlock

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Funny. Eight years of obama growing government astronomically made the problem WORSE. Funny you didn't mention that. In fact, these things rarely happened when government was not involved in loans and banks ate their bad decisions.

"Where is the regulator? Just look at what Donald Trump and Mick Mulvaney have been up to. Just look at what Republicans in Congress and some Democrats have been up to."

@2banana your response comes off as a non sequitor

Wash, rinse, repeat.

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.

Just in time for President Eric “Place” Holder.

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.

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

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.