What is Sub-prime Crisis ?
Answers were Sorted based on User's Feedback
Answer / rishabh jain
Sub prime crisis - The banks started giving loans to more and more people at sub prime rates (above market rate) because the borrowers were not having good credit history. More people were given loans at subprime rate because the agents had to meet their targets set by the banks and subprime loans doesn't need much of documentation and so easy to disburse. now after a limit the borrowers started defaulting i.e. they refused to give their loans because many people invested their money in real states whose prices started falling and the borrowers incurred losses and their income was not sufficient to payback loans.
(i have explained this in very short, there are many other things associated with crisis. if you wanna know more contact me at jain.rishabh.84@gmail.com)
Is This Answer Correct ? | 3 Yes | 1 No |
Answer / chaitanya
The term “subprime” refers to the credit status of the
borrower (being less than ideal), not the interest rate on
the loan itself. “sub prime” is any loan that does not meet
“prime” guidelines. If your mid fico score is below 620 and
you have any mortgage rates within 12 months or recent
BK/foreclosure, you are considered “sub prime”.
Is This Answer Correct ? | 1 Yes | 1 No |
what is the differace between depreciation and provision
Tell something about Pradhan Mantri Jan Dhan Yojna?
0 Answers IBPS, State Bank Of India SBI,
Explain the role of SEBI?
0 Answers State Bank Of India SBI,
How often you visit different places? Are you comfortable in relocation?
Describe a typical day of an investment banking analyst?
What are Mutual Funds?
12 Answers Ing Vysya Bank, Nabard, SEBI, State Bank Of India SBI,
1.how to describe my class room ? 2.how to describe my family ?
What is composite cost of capital?
what is a ratio analysis? please explain me the differnet kinds of ratios in detail?
what are certain measures for which you have to be ready for equity trading?
HIGHLIGHT THE FACTS WHICH LEAD TO THE FALL OF ENRON ?
Is there any ethical dilemma that the banks face?
0 Answers State Bank Of India SBI,