subprime lending
High-risk credit extension
Subprime lending is the practice of extending credit to borrowers with poor credit histories or limited ability to repay, typically at higher interest rates to offset the increased risk of default.
Subprime lending fueled the housing boom of the early 2000s.
The 2008 financial crisis was triggered largely by the collapse of subprime mortgage markets.
- mortgageSecured home loan
- adjustable rateInterest that fluctuates
- debtMoney owed another
- foreclosureLender seizes mortgaged property
- loanBorrowed money repaid later
refinancing · credit score · securitization · payday loans · easy money · risk · debt bondage · default · interest rate · credit default swaps · too big to fail · redlining · credit risk · consumer protection · credit counseling · creditworthiness · bad credit · homeowners
- money mistakesoverspending, impulse buying, gambling debt, debt spiral, no savings
- risksrisk, gamble, bet, wager, chance it
- creditcredit card, credit score, credit limit, credit cards, credit scores
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- economic problemsmarket failure, recession, inflation, deflation, stagflation
- mortgage termsmortgages, home loans, foreclosure, lien, interest rates