Subprime lending

(redirected from Subprime mortage)
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Subprime lending

Lending to individuals who have a bad credit history or relatively low income. A higher interest rate is charged for such loans because risk to the lender is higher. Excessive subprime lending is often pointed to as one of the major causes of the financial crisis of 2008-2009.
References in periodicals archive ?
The subprime mortage resets peak during the second quarter, coupled with problems at Fannie Mae and Freddie Mac, loom large over economy, iSuppli noted.
The Lehman Brothers foundered after it failed to settle a US$60 billion bill as an after effect of the subprime mortage crisis that begin in 2007.
DAVOS: Business leaders said yesterday they were aghast at a $7 billion fraud at French bank Societe Generale, which comes just as banks worldwide are reeling from losses inflicted by the subprime mortage crisis.
The published guidance on both nontraditional mortgage product risks and subprime mortage lending, along with comments in recent months from banking regulators including the Federal Reserve, confirm that federal regulators feel the pressure to act aggressively on the subprime lending turmoil.