How do subprime loans work?

Answer Subprime loans are just like prime loans with the notable exception that they are made to borrowers who represent a larger risk of default to the lender. Subprime loans are documented in much the s... Read More »

Top Q&A For: How do subprime loans work

Who started subprime loans?

Although subprime lending may have existed earlier, the Depository Institutions Deregulatory and Monetary Control Act of 1980 made subprime lending a feasible and legal practice. Subprime lending b... Read More »

The History of Subprime Loans?

A lot of people have heard about subprime loans because of the economic recession that hit in 2008, but not as many actually know what they are or how they came to be. Subprime loans are for people... Read More »

What Are the Dangers of Subprime Loans?

During the subprime mortgage lending era, from the early 2000s until the housing bubble burst in 2006, credit guidelines were looser than what conventional and government lending guidelines usually... Read More »

How did the government get involved in subprime loans?

While private mortgage companies were the main culprit in the subprime mortgage crisis, the U.S. government also played a role in the debacle. Freddie Mac and Fannie Mae followed policies to to p... Read More »