Mortgages that do not meet certain credit criteria and have a high probability of default are known as ________ mortgages.
A)prepayment
B)pooled
C)underwater
D)subprime

Question

Quizplus · Accepted Answer

Subprime mortgages are loans designed for borrowers with poor credit histories or low credit scores. These mortgages have a higher probability of default due to the increased risk associated with lending to borrowers with less than perfect credit.

Mortgages That Do Not Meet Certain Credit Criteria and Have