The Smoking Gun: Subprime Underwriting and Prepayment [View article]
They thought they were making home loans but really they were speculating on home price appreciation.
Subprime loans were much more profitable than prime loans for many years when homes were appreciating. The size of the subprime market exploded until home prices stop appreciating and subprime loan became boat anchors.
The Smoking Gun: Subprime Underwriting and Prepayment [View article]
Subprime loans were much more profitable than prime loans for many years when homes were appreciating. The size of the subprime market exploded until home prices stop appreciating and subprime loan became boat anchors.