PERSONAL FINANCE: WHAT IS SUBPRIME?

With all the global concern and anxiety churned up by the collapse of the subprime market, it is important to understand from a personal point of view what the noise is all about. We are thus starting a series of posts on personal subprime loans.
While the spotlight is on mortgages, subprime refers to all kinds of loans and is a category of borrowers or loans in which a financial institution places accounts evaluated as having a greater than normal risk of making late payments or of being in default. A subprime borrower can be …read more