Subprime Mortgage Loans Being Phased Out

In my previous post, I talked about the subprime mortgage loan and how it relates to the record-breaking number of home foreclosures in recent years. I also mentioned a tutorial I put together to explain how subprime loans work.

A recent article on the Wall Street Journal's website explains that some major lenders are actually phasing out their subprime mortgage loans. Says the Journal: "Some lenders are eliminating what until recently was the most popular type of home-mortgage loan for subprime borrowers, or borrowers with weak credit histories."

This development comes at a time when lenders are under intense scrutiny for their subprime lending practices, as those practices related to borrower default and foreclosure trends.

I will monitor all of this and keep you posted.