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Unformatted text preview: Score. These loans, however, are riskier than other loans. Q7. FICO defines subprime mortgage borrowers as individuals with a credit score below 620. Q8. Out of 100 people, around 25 would be subprime mortgage borrowers. Q9. The subprime mortgage crisis occurred when many borrowers defaulted in their payments in a short period of time leading banks to drop the lenders credit score even further. Q10. The U.S. economy might be dragged into a recession by the subprime mortgage lenders because if there are more lenders not paying and foreclosures happen more quickly, then it will hurt the U.S. economy and perhaps lead to a recession....
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- Fall '08