During the 2007-08 financial crisis, subprime mortgages were securitized and sold to the secondary market, where investors on the tranches believed that if borrowers defaulted, the houses could still be sold at an elevated price.

Authors

• Person: Yuqing Li Organization: 7 Pillars Institute
  Financial Ethics 101: Predatory Lending - Seven Pillars Institute

Sources

• Financial Ethics 101: Predatory Lending - Seven Pillars Institute 7pillarsinstitute-org.sevenpillarsconsulting.com Yuqing Li · 7 Pillars Institute via serper

Referenced by nodes (1)

• subprime mortgages concept