1, the meaning of subprime mortgage
Subprime mortgage refers to loans provided by some lending institutions to borrowers with poor income and messengers.
2, the characteristics of subprime mortgage loans
The loan standard of subprime loans is low, and the ratio of total loans to house price can be 85%, or the down payment can be zero, and the ratio of repayment amount to income can exceed 55%. The credit of the loan target is low, and the main targets of subprime loans are low-income families and illegal immigrants without good credit records.
The floating interest rate and the repayment method of first low and then high are implemented, and the floating interest rate ratio in subprime loans exceeds 85%. The main body of operation is the loan company, which mainly attracts lenders, packages all loans of lenders, evaluates the price increase, sells loans to institutional investors (pension funds and hedge funds), and transfers financial and loan risks. Although the risk has been diluted, the potential risk still exists.
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