2 ms·
> loans to higher risk clients, sub prime lending then?
by easytiger 11y ago
> loans to higher risk clients,
sub prime lending then?
- Jtsummers 11y agoI was curious so I looked up the definition (well, Wikipedia). Turns out, you're correct. Lending to high risk clients is the key component of subprime lending. What many people seem to think of is the high interest rates, unfavorable terms and other things which push subprime loans into the predatory loan category. It's entirely possible (though apparently hard here, with the restrictions on rates they could provide) to offer non-predatory subprime loans.