Number: RL33930
Title: Subprime Mortgages: Primer on Current Lending and Foreclosure Issues
Authors: Edward Vincent Murphy, Government and Finance Division 
Abstract: Subprime mortgages are loans extended to borrowers with weak credit profiles. Subprime mortgages entail higher risk of delinquency and default. Recent increases in subprime borrower foreclosures and lender bankruptcies have prompted concerns that some lenders' underwriting guidelines are too loose and that some borrowers may not have fully understood the risks of the mortgage products they chose. Regulatory agencies are revisiting the guidance they provide lenders and are reevaluating required disclosures to consumers. In addition, Congress is holding hearings on the subject and may consider consumer protection legislation.
Pages: 9
Date: March 19, 2007