Subprime Lending Margins Being Squeezed In 2004; Barriers to Entry Growing Higher
October 13, 2004
Interest rates on subprime loans have narrowed significantly over the past year, relative to those on prime mortgages, but the factors behind the tightening are complex, says a mortgage researcher at RBS Greenwich Capital. Competitive pressures are likely a major reason why subprime rates have narrowed about 70 basis points over the last year, says Peter DiMartino in a recent research note.