What technological innovation led to the development of the subprime mortgage market?

Question:

What technological innovation led to the development of the subprime mortgage market?

A subprime mortgage.

The "subprime" term means "below expectation". In the mortgage market, subprime mortgages are those that are offered to individuals with low credit scores. This special group of loans is charged at higher than normal interest due to the risk of defaulting on the loans.

Answer and Explanation:

Technological innovation in financial engineering led to the development of the subprime mortgage market. Financial engineering uses computer...

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Buying a House: Mortgage Types & Loan Length

from Finance 102: Personal Finance

Chapter 7 / Lesson 4
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