CHICAGO -- Lenders are taking a closer look at borrowers who don't meet conventional credit standards as a source of profitable business, but those already out in the field advise: Proceed with caution.

The loans are widely known as B and C paper, and some lenders even get down to D-quality credit. Such loans pre-sent an added servicing challenge to lenders.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.