Exact(21)
Marginal borrowers may struggle to pay debts.
But buyers of such loans are increasingly wary of lending to marginal borrowers.
A profit-driven economic recovery has also allowed many marginal borrowers to regain solvency.
Credit Suisse thinks "marginal" borrowers make up a third of subprime loans.
The size of the credit market is smaller today because banks will no longer make risky loans to marginal borrowers.
But industry experts say that some consumers, especially those considered marginal borrowers, may now be prevented from buying or refinancing a property.
Similar(37)
But it also suggests that peer-to-peer lending may not be as much help to the marginal borrower as some hope.
But near-zero inflation means that the marginal borrower might not be able make coupon payments.
Jeff Lazerson, the company's chief executive, says this prevents lenders from increasing the interest rates of borrowers in marginal areas.
The high marginal tax rate faced by borrowers may deter them from slogging for pay rises.
But a report that will be released on Tuesday by the New America Foundation, a nonprofit and nonpartisan policy institute, says the changes ultimately will provide only marginal help for low-income borrowers who are at the greatest risk of default.
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