Abstract
The subprime market reflected an expansion of credit to those borrowers who might not otherwise have been served by prime market lenders. Typically, subprime borrowers were characterised by having lower credit scores, indicating some problems with their historical utilisation of credit. Lenders responded to public policy initiatives to expand credit to those constrained from homeownership by wealth, income, and credit constraints by offering a set of innovative products that did not have the same credit standards or documentation requirements as did those offered in the prime market. These products included low down payments, easier payment terms with low introductory interest rates, and longer amortisation terms. The subprime market grew rapidly from 2000 to 2006, collapsing near totally by the end of 2007.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.