Lenders are originating more mortgages for subprime borrowers, according to Equifax.
Originations of first mortgages to borrowers with an Equifax Risk Score of 620 or below increased 28% through the first 10 months of 2015, compared to the same time period a year earlier. Total balances increased 45% over the same period.
"Credit standards are becoming more accommodating to meet market demand," said Amy Crews Cutts, chief economist at Equifax.
"Lenders are focusing more attention on evaluating consumers' ability to repay," she said. "This has led to a much larger reliance on third-party data verifications that enable lenders to more accurately vet subprime borrowers much earlier in the origination process."
Home equity lines have also increased to subprime borrowers, with originations rising 32.7% over the same period.
