Mortgage Guide

JASMINE P asked:

caused the turbulence in the financial markets as a result of sub prime mortgages, why it affected so many different types of financial institutions including the real estate market, and what the Fed. Reserve Bank and Treasury dept are doing to contain the issues. “subprime mortgages”

Question posted courtesy of: Alicia

Shukie L asked:

hi, i am new to mortgages and related topics, but why do lenders (including those who went bankrupt after the crisis) decide to lend money to sub prime customers when they know chances are they won’t be able to pay it? what lenders gain besides interests?

Question posted courtesy of: Gene