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The Subprime Mortgage Outlook
A basic tenet of the U.S. housing philosophy is to increase home ownership so that more and more people can realize their share of the American Dream. Subprime lending-which essentially means the practice of lending money to people with poor credit-plays a critical role in fulfilling those goals. That's why government and industry don't want to see subprimes disappear. Expect them to rise again, someday. Those new subprimes, which will look much different from their ugly predecessors, are a necessary component of America's lending industry. Without them, many homebuyers will be prevented from taking out mortgages, and homeowners will be limited in their mortgage refinance options.