Subprime mortgages make a comeback-with a new name and soaring demand

The subprime mortgage industry vanished after the Great Recession but is now being reinvented as the nonprime market. Carrington Mortgage is now offering mortgages to borrowers with “less-than-perfect-credit.”  Demand from both borrowers and investors are exceeding expectations. California-based Carrington Mortgage Services, a midsized lender, just announced an expansion into the space, offering loans to borrowers, “with less-than-perfect credit.” Carrington will originate and service the loans, but it will also securitize them for sale to investors.

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Source: CNBC

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