Sub-prime crisis
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Title: Sub-prime crisis

Essay Details:

Subject: Business
Date: August 16, 2013
Level: University
Grade: B
Length: 3 / 890

Essay text:

Since the rates of interest were quite low and there was a boom in the real estate sector, demand for home loans kept on increasing. Concept of sub-prime rates of interest Lenders use credit scores to determine who qualifies for a loan, at what interest rate and at what credit limits. Credit scores of borrowers are usually obtained by the banks and other lenders from the credit bureaus or credit reference agencies and these represent the credit worthiness of the borrowers. The individuals with a credit score of more than 620 often get loans at Prime or conventional rates. Individuals who have experienced severe financial troubles often have doubtful creditworthiness and thus are labelled as higher risk and therefore cannot obtain conventional financing...

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