subprime mortgage

Definition
A class of mortgage used by borrowers with low credit ratings. Borrowers who use subprime loans generally do not qualify for loans with lower rates because they have damaged credit or no credit history, and are thus considered risky by lending agencies. Because the default risk for poor credit borrowers is greater than of other borrowers, lenders charge a higher interest rate on subprime loans.




subprime mortgage is ...
... part of the
Lending & Credit and Real Estate subjects.


Related Terms

predatory lending -  More
structured investment vehicle -  More
excess spread -  More
shadow banking system, Term Auction Facility, FASB 157, toxic assets
Loading...

Featured Sponsor





Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z