subprime http://michiganradio.org en Chrysler boosts sales with subprime borrowers http://michiganradio.org/post/chrysler-boosts-sales-subprime-borrowers <p align="LEFT">Chrysler&#39;s new car sales have been improving faster than almost any other car company in the U.S. in recent months.</p><p align="LEFT">But the company has also been relying on subprime borrowers more than almost any other car company.</p><p align="LEFT">That&#39;s according to Edmunds.com.</p><p align="LEFT">People with good credit can usually find a car loan with a four percent interest rate.</p><p align="LEFT">But a growing number of Chrysler&#39;s customers have poor credit - and <em><strong>their&nbsp;</strong></em>loans have 10 percent interest rates.</p><p align="LEFT">Edmunds analyst Jessica Caldwell says it&#39;s definitely boosting Chrysler&#39;s sales, but there are risks.</p><p align="LEFT">&quot;I think subprime can tarnish your image in a way,&quot; she says.&nbsp; &quot;If you have a high percentage of subprime borrowers, people start to catch on or think&nbsp;that perhaps your brand isn&#39;t as prestigious as you would want to think it is.&quot;</p><p align="LEFT">Even though subprime car loans are riskier, there is still a relatively low rate of default.</p><p align="LEFT">People are much more likely to default on a subprime house loan than a subprime car loan.<span style="display: none;">&nbsp; Wed, 23 May 2012 02:47:59 +0000 Tracy Samilton 7572 at http://michiganradio.org Chrysler boosts sales with subprime borrowers Sen. Levin accuses mortgage lenders of "greed and deception" http://michiganradio.org/post/sen-levin-accuses-mortgage-lenders-greed-and-deception <p><a href="http://platform.publicbroadcasting.net/michigan/media/docs/senatewallstreetreport.pdf">A new report</a> lays the blame for much of Detroit&rsquo;s foreclosure problems at the feet of one of the nation&rsquo;s largest mortgage lenders.&nbsp;</p><p>In 2003, Washington Mutual Bank&rsquo;s CEO said he wanted to turn his bank into<a href="http://en.wikipedia.org/wiki/Washington_Mutual"> &ldquo;the Wal-Mart of Banking.&quot;&nbsp; </a>His plan was to focus on low and moderate income borrowers deemed &ldquo;too risky&rdquo; by other lenders.&nbsp;</p><p>By 2008, federal regulators seized Washington Mutual and the company filed for bankruptcy protection.&nbsp;</p><p>What happened?&nbsp;</p><p>Washington Mutual had taken major losses in the subprime loan market.&nbsp; Its subsidiary, Long Beach Mortgage Corporation was for a time the second biggest subprime mortgage lender in Detroit.&nbsp; Between 2005 and 2007, more than half of those loans ended in foreclosure.</p><p>Michigan U.S. Senator Carl Levin says Washington Mutual&rsquo;s subprime loan practices &ldquo;devastated&rdquo; neighborhoods and families in Detroit.&nbsp; At the end of a year long investigation, Levin&rsquo;s released a report blaming reckless lending and lax federal oversight for the near collapse of the nation&rsquo;s banking system in 2008. Thu, 14 Apr 2011 05:01:01 +0000 Steve Carmody 2070 at http://michiganradio.org Sen. Levin accuses mortgage lenders of "greed and deception"