In recent years there has been a large increase in the number of
mortgage loans made by lenders specializing in lending to borrowers
with imperfect credit histories, especially in the home equity loan
market.1 Most "subprime" lenders are mortgage or finance companies,
but they can also be thrifts or even banks. Some of the largest
subprime lenders are affiliates of banks. Subprime firms typically
charge borrowers higher fees and interest rates than "prime"
lenders, which include most banks and thrifts as well as many
mortgage companies.
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