Subprime Lending Didn’t Increase Homeownership: Report
The subprime lending boom that took place from 2001 to 2006 did little to boost homeownership, according to a study conducted by the Federal Reserve Bank of St. Louis.
Instead, subprime loans served as little more than temporary bridge financing, as most were prepaid (via refinance or sale) or defaulted on within just a few years after origination.
“The termination rates of subprime mortgages that originated Read more