Generally, subprime loans are for people with blemished or limited credit histories. These loans carry a higher rate of interest than prime loans to compensate for the increased risk to the lending institution. To maintain safe and sound operations, the lender should determine whether this risk is acceptable and controllable given its staff, financial condition, size, and level of capital support. Follow the links on this page to regulatory resources related to subprime lending.
NR = News Release
Expanded Guidance for Subprime Lending Programs (OCC 2001-6, January 2001), Interagency Guidance
Regulators Issue Illustration of Consumer Information for Hybrid Adjustable Rate Products (NR 2008-57, May 2008), Illustrations
Subprime Lending Activities (OCC 1999-10, March 1999), Interagency Guidance
Subprime Lending, Risks and Rewards (OCC 1999-15, April 1999), Interim Examination Procedures
Subprime Mortgage Lending (OCC 2007-26, July 2007), Final Guidance (Federal Register, July 10, 2007)