In​ 2006, David had a very low credit​ score, insufficient​ income, and no collateral to offer for a loan.​ Yet, when he​ applied, he was approved by YourMoney Bank for a loan to buy a house. Which of the following describes this​ loan?

In​ 2006, David had a very low credit​ score, insufficient​ income, and no collateral to offer for a loan.​ Yet, when he​ applied, he was approved by YourMoney Bank for a loan to buy a house. Which of the following describes this​ loan?

In​ 2006, David had a very low credit​ score, insufficient​ income, and no collateral to offer for a loan.​ Yet, when he​ applied, he was approved by YourMoney Bank for a loan to buy a house. Which of the following describes this​ loan?



A. Subprime mortgage

B. Loan-to-value ratio

C. Mortgage-backed security

D. Option ARM

E. Adjustable rate mortgage



Answer: A. Subprime mortgage


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