Page 27 of 29Glossary Last Update

5/2024 Subprime lending Loans to borrowers with poor credit. Typically charge higher interest rates to insure against losses. Module 5.1 Subprime loan A type of mortgage with less stringent lending and underwriting terms and conditions, usually offered to borrowers with blemished or limited credit history, low income, and/ or limited documentation. Due to the increased credit risk, subprime loans carry higher interest rates than prime loans. Module 4.1 Subsidized housing Privately owned housing whose owners agree to lease their properties to low- or moderateforms, including individual vouchers or subsidies for units in a multifamily dwelling.