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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1867 |
Essay's paper body
Subprime loans are for people who do not have excellent credit; these types of loans are referred to as “b†paper or second chance loans. These types of loans give the opportunity for consumers that have made financial mistakes in the past to still go after the American dream. Since these consumers have below average credit ratings, they are considered risky borrowers and the terms of the loan are much different from a person whom has good credit...
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Most subprime loans come with an adjustable rate mortgage (ARM).
In 2004, the subprime business was booming and loans were being granted at a dizzying rate. Mortgage companies like Ameriquest started expanding their offices and hiring more staff to support the rapidly increasing originating loans. As time went by subprime loans were proving to be successful in increasing revenue for mortgage companies until the ARM’s started to increase...
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