Identify a true statement about subprime mortgage loans.
A)They are given to people with a high credit score.
B)They are less attractive to lenders because they provide a lower return than any other form of investment.
C)They are usually issued to people who have a high ability to repay the money they borrow.
D)They are lent to borrowers with high debt-to-income ratios.

Question

Quizplus · Accepted Answer

Subprime mortgage loans are typically lent to borrowers with high debt-to-income ratios and poor credit scores, who may have trouble qualifying for traditional mortgages.

Identify a True Statement About Subprime Mortgage Loans