subprime lender

High-risk loan source

A subprime lender is a financial institution that extends credit to borrowers with poor credit histories or limited ability to repay—people who don't qualify for conventional loans.

These lenders charge higher interest rates to offset the increased risk of default.

The term gained notoriety during the 2008 financial crisis, when widespread subprime mortgage lending contributed to a housing market collapse.

Related

default · adjustable rate · adjustable · risky · bad credit · bubble · crisis · broker · interest · debt · credit · loan · no money down · refinance · bailout · too big to fail · toxic · underwater

Opposites
borrower creditworthiness served

subprime lendercredit union

Member-owned financial cooperative

community bank · private bank · JPMorgan Chase · savings and loan · Goldman Sachs

transaction role

subprime lenderborrower

One who takes temporarily

debtor · mortgagee

Family

subprime, lender, sub, prime, lend, primal, primer, primeval, primary

Familiarity
Top 500,000
Profile
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