subprime lending explained for the benefit of the idiot
Government-mandated subprime lending entails increased risk to the lender. The higher interest rate does not offset this. So FNMA/FRMC would buy the debt, bundle it, and sell it as a 'subprime investment package'.
Now the government is suing banks for lending to high risk borrowers the government forced them to lend to in the first place.
Have you always been stupid, or did you have to work at it?
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