A: Subprime lenders generated unnecessary loans so you’re able to individuals which don’t build enough currency to make the monthly payments
Just like the property appreciates, actually borrowers who are not make payment on dominant amount borrowed develop even more collateral
The brand new hang over on financing spree that provided the real estate boom from inside the earliest half that it a decade features bringing tough, with acute pain tormenting the borrowed funds market catering to high-exposure, or subprime, borrowers.