Top subprime executives are back in the game
It did not take long for top executives from the biggest subprime lenders to jump back into the game, with many now developing loans for borrowers with low credit scores, the Huffington Post reports.
The Center for Public Integrity in 2009 identified the top 25 lenders by subprime loan production from 2005 through 2007. Today, senior executives from all 25 of those companies or companies that they swallowed up before the crash are back in the mortgage business. Most of these newer “non-bank” lenders are making or collecting on loans that may be too risky to qualify for backing by the U.S. government. As the industry regains its footing, these specialty lenders represent a small but growing portion of the market.