During the 2007-08 financial crisis, subprime mortgages were securitized and sold to the secondary market, where investors on the tranches operated under the belief that they could sell the underlying houses at an elevated price if borrowers defaulted.

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