MLchartDataset catalogue

Subprime loans

Term · Insurance and risk management · MLC-T-INS-003227

Loans offered at rates above prime to individuals who do not qualify for conventional market-rate loans due to a poor credit history or other risk factors. These loans carry higher interest rates and fees to compensate the lender for accepting greater risk of default. The widespread bundling and sale of subprime mortgage-backed securities was a central factor in the 2008 financial crisis, leading to extensive Directors and Officers (D&O) and Errors and Omissions (E&O) claims against financial institutions.

Table 1. Record
IdentifierMLC-T-INS-003227
FieldInsurance and risk management
SubjectManagement Liability
Record as JSON 
{
  "id": "MLC-T-INS-003227",
  "term": "Subprime loans",
  "field": "Insurance and risk management",
  "definition": "Loans offered at rates above prime to individuals who do not qualify for conventional market-rate loans due to a poor credit history or other risk factors. These loans carry higher interest rates and fees to compensate the lender for accepting greater risk of default. The widespread bundling and sale of subprime mortgage-backed securities was a central factor in the 2008 financial crisis, leading to extensive Directors and Officers (D&O) and Errors and Omissions (E&O) claims against financial institutions.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/subprime-loans/"
}

Record 3,283 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.