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Explanation: A type of home loan extended to individuals with poor, incomplete, or nonexistent credit histories. Because the borrowers in that case present a higher risk for lenders, subprime mortgages typically charge higher interest rates than standard (prime) mortgages. The most common type of subprime mortgage contract offered in the United States is the adjustable rate mortgage (ARM), which charges a fixed interest rate for an initial period and a floating interest rate thereafter. The floating rate may be based on an index such as the federal funds rate , which is the rate at which banks lend money to each other overnight. The sharp increase in subprime lending that occurred in the United States beginning in the late 1990s was primarily fueled by subprime mortgages. According to the Federal Reserve , the share of subprime mortgages among all home loans in the country increased from about 2.5 percent per year in the late 1990s to about 15 percent per year in 2004–07. One reason for the increase was aggressive marketing by mortgage brokers, who were paid commissions on the basis of the quantity, not the quality, of the loan contracts they sold.
Rural youth belonging to poor families are identified and trained for Self-employment in RSETIs. What does the “E” stand for in RSETIs?
Which of the following is not a qualitative characteristic of accounting information?
It is a special account that a firm prepares to show the distribution of profits/losses among the partners or shareholders. Name of such account is:
HDFC Bank is a systemically important Bank. As such, it has to maintain additional Common Equity Tier 1 of ________ as a percentage of its Risk-Weighted...
What does the term 'dividend yield' signify for an investor in the equity market?
Which of the following is true regarding the Insolvency and Bankruptcy Code (IBC) and its impact on insurance companies in India?
In which of the following locations is the international Gateway for SWIFT situated?
Name the risk which arises when bank’s image is not good and that leads to public’s loss of confidence in the bank.
In India, day count convention for Money Market is different from day count convention for Bond Market. The day count convention for Money market is _...
Consider the following Statements about the Sukanya Samriddhi Account and choose the option with correct Statements.
I- It was launched in 201...