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Politics, News & Issues > Economic News Subprime lender crisis and the struggling home mortgage market: 11 of 11

By now everyone who hasn't been living under a rock for the few months has heard about the mortgage crisis. Basically what's going on is that during the housing boom, greedy mortgage lenders were financing huge mortgages to under qualified borrowers. Sub-prime borrowers include people with less than perfect credit and those with good credit but little or no documented proof of income. These borrowers have a higher default risk and therefore pay a higher interest rate in order to compensate for the risk they pose. In addition to lending to sub-prime borrowers, there was a lot of adjustable ...
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