News: Subprime Lending

General Motors today acquired subprime lender AmeriCredit, as part of a $3.5 billion deal that will help extend loans and leases to those with blemished credit.

Much of the negative publicity surrounding the subprime lending market in the past nine months. In practice, most of our readers appreciate the fine and the history of credit loan from traditional markets.

But company will be lending money only for vehicles, not for homes.

Cambridge Place Investment Management is suing the word’s biggest banks in an effort to recoup a $1.2 billion loss tired to subprime mortgages. The Boston-based firm said it lost about 50% of its investment, alleging that the banks facilitated an “environment of improper lending practices.”

Wells Fargo announced yesterday that it was getting out of the subprime mortgage lending business and closing all 638 offices of its Wells Fargo Financial division, the source of most of its subprime loans.

Ameriquest group of subprime lenders has agreed to settle 29 class action lawsuits alleging predatory lending. The group has pledged $22 million to repay those aggrieved borrowers.

If you are in the UK and have a bad credit rating the chances are you are either new to trying to find subprime loans or you have a fairly clear picture of the lending landscape. Either way here is a quick catch up. Lenders generally decline loan requests of people with bad credit history.

What is a private investor and how do they differ from a hard money lender or a subprime lender? A: A private investor is an individual who lends out their own funds to borrowers who are unable to obtain a loan from a traditional lender such as a bank.