Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

SUB 500 Mortgage Inc.

Posted by: Peter Coy on January 5, 2006

Thanks to for pointing out a company specializing in mortgage loans for people with abysmally bad credit—FICO scores below 500.

The San Diego-based company, SUB 500 Mortgage Inc., illustrates the home page of its website with a driver’s eye view of a race track, which I guess is the revved-up perspective of people who actually think they can go out and buy a house with severely impaired credit.

Rates start at just over 10%.

Reader Comments

Galleria Panhandler

January 5, 2006 8:13 PM

Wow! Your apprentice,, has some real issues that are probably going to require a lot of therapy. But first, why the negative attitude towards Sub500Mortgage? Last time I checked we still had a free market economy that allows buyers and sellers the opportunity to choose. Sub500 is fulfilling a market niche by providing money based on factors other than the credit score. And guess what? The investors that are giving the money to Sub500 to give to borrowers are completely aware of who they are lending to. But, unlike you, they are not part of the herd that believes credit scores are a crystal ball. They are putting up money for as long as 30 years to people with "bad credit." It takes guts but they also get a higher return for their risk. What's wrong with that? Do you really have a problem with a higher return on higher risk? More importantly, Sub500, is putting more emphasis on payment history and loan to value. I mean, really, how many people are going to walk away from 30% equity? Would you walk away from $60,000 on a home worth $200k by letting it get foreclosed? Sub500's website shows they only lend up to 70% of the home's value. If the borrower gets in financial trouble then they sell the house and keep their 30% minus closing costs. Where's the problem? Unfortunately, almost all financial lending decisions are made with the heaviest emphasis on the credit score. As a loan officer, right now, I'm looking file that has a 120 point discrepancy between the low score and high score: 520, 555, 640. Those scores don't mean a lot to me. I'm more concerned about job history, continued prospects for employment and savings. Do I really care that one credit bureau is reporting a 520 score because my applicant's insurance company doubled billed him and the unpaid chargeoff went to 3 different collection agencies? Or that he didn't pay a $25 returned check to the local video store? Let's all try to do a better job by digging just a little deeper.....don't forget the human equation. (I have no affiliation to Sub500, just too much time on my hand because of senseless credit computer models)


January 9, 2006 8:18 PM


I have read that blog for quite a while now. I think you need to read more than one snip of his blog to get a picture of what AFB is talking about.

If you read the blog, He is talking about borrowers with low fico's that need high LTV's. He actually refers people to sub500 if his lender cannot do the loan.

He has made some of the same arguments you made in the past. I have learned a lot from his blog.


Galleria Panhandler

January 10, 2006 7:40 PM

Thanks to Peter Coy for posting my thoughts and Steve for his feedback.

After catching Mr. Coy's remarks and followiing the link to AFB I quickly noticed a current blog concerning a generalizaton of America's declining math skills. I didn't come away from AFB's presentation with a positive impression because of this remark: "...I fault the "do gooding" lender that gave them a loan (actually multiple "refi" loans) in the name of "helping them achieve the American Dream of home ownership". Since these borrowers obviously aren't that 'up' on basic math, I'm sure the broker realized it, and made a fat commission on them..."

It sounded paternalistic. Couple that with the confusion of AFB's arguement that lenders are causing the housing bubbles while simultaneously advertising for 1.5% interest only loan programs and foreclosure lists and you can understand my quick first impression.

However, after reading Steve's post I reviewed more of the site and agree that there is some interesting knowledge to be found there. Personally, I would have packaged the same theme in less coarse and controversial manner, but that's me. My remarks were intended to put in perspective the relationship between credit scores and interest rates. If credit scores are so important then why doesn't the US Government use them when insuring FHA and VA loans? The answer is because they are unreliable and incorrect. As for Mr. Coy's AFB rate comment concerning "Rates start at 10%", according to the national mortgage monthly average in December 1983 was 13.4%. Okay, that was a long time ago but the point is that we are coming out of a nearly unprecented time were we have enjoyed and come to expect dirt low interest rates. My question is who was loaning out millions of dollars at 4% fixed for 30 years during the Refi Boom? How do you make any money at 4%? If your financial advisor tried to sell you on an annual compounded portfolio return of 4% you would probably nod your head pleasantly and make a courteous exit as soon as possible. In summary, our low rates are going the way of the dodo and we all need to understand and accept it while turning our national skepticism on foreign companies (ie, Experian or GUS PLC as they are known in the UK) reporting erroneous information that impacts the financial lives of millions of Americans. Thanks again to this commercial forum for the opportunity to publicly express freedom of information.

Carolyn Parker

January 30, 2007 12:08 PM

I am in of a sub 500 mortgages lender name and tel, if you could help me out with that.

Denise Carter

December 18, 2007 7:58 PM

Are you in the North or South?

CA Mortgage

July 24, 2008 3:55 PM

We now know that SUB PRIME 500 Mortgage Company is a fraud. Have they gone under since the scandal of immoral lending practices broke. Why are they no longer in existence? Why were they so quick to sell off mortgages to other companies. Did they need to get out quickly before the investigation began? We shall soon see.

Former Employee

September 21, 2008 5:04 PM

They moved to Fairbanks Ranch, still have a bank account with wamu under the name Sub 500 Morgage, the new company name is Monaco Finance and he didnt even have enough money to pay me for my first 2 weeks of work with the company...


January 9, 2009 5:03 PM

Would like to look into an investigation into Sub500. Need to talk to witnesses/employees. All concerned please

venice cali

February 8, 2009 5:51 PM

I would like to know if there is anyone that Sub 500 ripped off?
I need your feed back from anyone out there with a similar past experience, this will really help my friends family. A elderly friend of mine was looking for a mortgage company that would help her with a loan she did not have the greatest credit and called every place that would give her a chance to get the help she so desperately needed due to her credit. Sub 500 was he only company at that time that would help her under one condition that my elderly friend would have to state that she lived in one of her other homes that was not her domicile or her homestead.
During this time my elderly friend was under duress and suffered from dementia. Within 3 months of waiting she was finally approved for a $105,000 dollar loan in which was a 30 year fixed rate. 3 months later she passes away from a stroke.
After her passing,her daughter continued to pay for the Sub 500 in hopes to save her parents home.(Mind you all the mail for the loan was being mailed to the tenants that resided in the home,that Sub 500 had my elderly friend say she resided at.
Three years into the loan she becomes a month or two behind they decide to file a notice of default {my friends daughter continued for 3 years to catch up with payment arrangements.When things got tough for her daughter she then becomes behind for 2 1/2 months.
She calls and asks for the contract that her mother had signed and let me tell you they where well aware of the death of my elderly friend and continued to accept the payments, but would not give her the contract or a lower rates or to work with her during the mourning of her mother and a month later her brother.The would not answer her calls and she would continued to leave messages.She knew she would have to seek legal help and probate when she advised them of this they avoided her and continued to have the mail of her deceased mother to the tenants home.Sub 500 then knew that they would soon have to answer to the law and would be known to the courts and public for committing fraud.They soon sent her a letter saying she would have to speak with the legal department which happened to be ran by Action foreclosure.
She continued to ask for a letter of demand and the contract her mother had signed and called both companies in hopes that they or one of them would lower her payments and work with her.they would not help her at all. What rights did either one of them have they where cheated out of there property robbed and ripped the hell off, gave the run around,and this company continued to violate there rights and and the law!
For there own benefit
I consider Sub 500 crooks
You know who you are!!
Please give me advise and your response... its will be appreciated.

Venice Cali

venice cali

February 8, 2009 6:03 PM

Any attorneys in response to my post please contact me to help this unfortunate family in there loss of there loved one and those who took advantage of her and her family.

By the way she still is paid the taxes have of records states the property is still hers .... Her tenants where evicted because of foreclosure.
The bank claims they bought the property at the the foreclosure auction but they sold the day before the auction date!
Can they do this?
Venice Cali


March 5, 2009 5:03 PM

Aloha, we used SUB 500 and can no longer locate them to send payment. I do not want my home to be foreclosed. But I have no idea who has my mortgage being that SUB 500 is no longer in business. Anyone out there please help!
A private lender contacted me about payment, but I took the paperwork to 2 mortage brokers and they think the private party is a fraud. Please help


August 4, 2009 4:23 AM

We had a mortgage with Sub500 & I knew we were heading for problems with our loan so I contacted them to work out a payment plan but was told they wouldn't be able to help me, when we missed 3 months a 3rd party private investor foreclosed on our home. I called & wrote a letter to them requesting for the contract & a detailed breakdown of our payments but never got a response, so I recorded in our Bureau of Conveyance for public record a document of Non-Response/Non-Performance and had a Public Notary mail them a document of Due Presentment under Notary Seal. I'm currently fight this in court, since Sub500 DIDNOT DISCLOSE that my loan was through a 3rd party private investor. I've also filed in the court a motion requesting for ratification of commencement to show proof that we have a valid contract with this 3rd party as well as with Sub500, since a valid contract MUST be signed by both parties with FULL DISCLOSURE of the TERMS, but with our corrupt system, they haven't provided any proof of evidence and the judge granted their request to have us ejected from our home. Fraud has been committed and I'm determined to fight this not for me but for the sake of my grandchildren. This type of corruption must be STOPPED. I fully comprehend & pray for everyone's justice to be served.


November 17, 2009 6:08 PM

Aloha, any advise I do not want to loose the house, but who do I send payment to? Please e-mail back

Post a comment



BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

BW Mall - Sponsored Links

Buy a link now!