Subprime Lending

Subprime Lending

Definition from Wikipedia.org:

Subprime lending, also called B-Paper, near-prime, or second chance lending, is a general term
that refers to the practice of making loans to borrowers who do not qualify for the best market
interest rates because of their deficient credit history. Subprime lending is risky for both lenders and
borrowers due to the combination of high interest rates, poor credit history, and murky financial situations
often associated with subprime applicants. A subprime loan is offered at a rate higher than
A-paper loans due to the increased risk.

See also other Words in the News, Mortgage

Article: Home Equity Loans