The loans are called subprime because they’re designed to be sold to borrowers who have lower-than-prime credit scores. That’s the idea, but it wasn’t the practice. An analysis conducted for the Wall Street Journal in 2007 showed that the majority of subprime loans were going to people who could have qualified for less expensive prime loans. So, if the loans weren’t defined by the borrowers’ credit scores, what did subprime loans all have in common?
