Subprime mortgage lending hit an all-time high in 2005, leading to the 2008 financial crisis.\u00a0<\/span><\/p>Because central banks tried to stimulate the economy with lower interest rates and increasing demand for mortgages, lenders started giving loans to people with poor credit and a high risk of default.\u00a0<\/p>
When home prices began to fall, in late 2005, it led to borrowers being unable to afford their mortgages, defaulting on their loans, and subprime lenders filing for bankruptcy.<\/p>
Many lenders refused to give out loans to consumers with low credit scores after the financial crisis.\u00a0<\/p>
Though lenders have started to offer subprime mortgage loans again, the process is much longer requiring more documentation and verification by the lender that borrowers can afford to pay off the loan.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t