subprime mortgages
High-risk home loans
Subprime mortgages are home loans made to borrowers with poor credit histories or limited ability to repay.
These higher-risk loans typically carry higher interest rates to compensate lenders.
The mass packaging and trading of subprime mortgages—and their widespread default—triggered the 2008 global financial crisis: The subprime mortgage collapse wiped out billions in value.
- foreclosureLender seizes mortgaged property
- defaultPreset standard option
- housing crisisSevere lack of affordable dwellings
- housingDwellings or protective covering
- crashSudden violent impact
bubble · toxic · loans · liar loans · predatory · lending · no money down · 2008 · bailout · too big to fail · Wall Street · Main Street · adjustable · rate · interest only · risk · credit · credit score
- loansloan, loans, lend, borrow, auto loans
- housing crisishousing bubble, housing crash, foreclosures, foreclosure, negative equity
- predatory lendingpayday loans, title loans, loan sharks, loan sharking, usury
- financial crisesfinancial collapse, bank run, economic collapse, bank failure, bank failures
- SecuritizationABS, CDO, CMO, tranche, tranches