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A comment on More Subprime Borrowers Are Missing Loan Payments.

Re:More Subprime Borrowers Are Missing Loan Payments by sbarbarian on Thursday May 19, 2022 @05:37PM (#31440508)
The subprime space is really interesting vs mortgages. Like others mention, the due diligence these providers run for these is minimal.

The business model has been so successful in recent years because there have been such large numbers of applicants. Even though they approve only a fraction, the sheer volume means their business is booming. This all translates into not having to dig any deeper than credit scores.

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Re:More Subprime Borrowers Are Missing Loan Payments by rco8786 on Thursday May 19, 2022 @07:33PM (#31441582)
That doesn’t make any sense. You’re implying that they’re just lending to people with the best credit scores. Which definitioally makes these not subprime loans.
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Re:More Subprime Borrowers Are Missing Loan Payments by sbarbarian on Friday May 20, 2022 @08:43AM (#31446596)
Sorry, didn't mean to imply that. Its the best of the worst. You just lower the threshold to hit the volumes / default rate you're comfortable with to make a profit. Subprime is anything lower than 670, so you don't need to go so low.
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