High-cost loans are dangerous, and lenders who make them can face harsh financial penalties if they fail to make proper disclosures or avoid predatory features.
Payday loans are dangerous and often lead to much deeper debt than you were in when you got the loan in the first place.
Countrywide needed to maintain its position as the leading lender in a white-hot mortgage market, the S.E.C. said, and underwrote increasingly dangerous loans, all the while assuring investors that its loans were top quality.
Referring to the empowered sales force, the price-any-loan tactic, the weakened guidelines, and the dangerous loan products, another former Countrywide executive said that the thirty-per-centmarket-share approach "drove almost everything the company did".
We're more likely to have bad credit ratings and may be inclined to take out more potentially dangerous loans.
Some industry officials say lenders have pushed too hard in selling dangerous loans to vulnerable homeowners who may not fully appreciate the risks.
Club for Growth is holding it up as the next Fannie Mae or Freddie Mac, crowding out private lending and offering dangerous loans that ultimately could be left in the laps of the taxpayer.
Student loans are especially dangerous for co-signers.
Prof Werner believes UK regulators should have told the banks to lend more responsibly, rather than focusing on more dangerous loans to the financial sector and hedge funds.
Nor does it make sense that a sophisticated bank like Goldman, which runs an entire business based on the ability to calculate risk, would purchase such dangerous loans without knowing that they were toxic, he said.
There was a story this month about loan sharks using dangerous dogs to intimidate parents to pay back loans when they collected children from the school gates.
