Possible Subprime Loan Downturn Looms


SubPrimeNews - July 20, 2012

Subprime loan performance has been strong in the past few years, but the potential for increasing competition leads senior analyst Peter McNally and senior VP Joseph Snailer of Moody’s Investors Service to fear “losses could increase if a race for profits and market share results in weaker underwriting standards,” especially with the increase of small, specialty finance companies that exhibit “speculative characteristics.”