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According to The New York Times, the term “subprime mortgages” after the housing bust is “almost synonymous with the insidious loan products of the previous decade.”
As a result, many lenders in this mortgage market are using different adjectives to describe the product, such as non-QM (for qualifying mortgage) or “alternative.”
The reason for this, according to Tom Hutchens, senior vice president for sales and marketing at Atlanta-based Angel Oak Mortgage Solutions, is to educate people about what the 2015 subprime is.
Hutchens says that the subprime mortgage products his company offers look more like the ones of the late 1990s.
