Wall Street Journal On Credit Worthy Borrowers Steered Into Subprime Loans

The Wall Street Journal reports:

• One common assumption about the subprime mortgage crisis is that it revolves around borrowers with sketchy credit who couldn't have bought a home without paying punitively high interest rates. But it turns out that plenty of people with seemingly good credit are also caught in the subprime trap. An analysis for The Wall Street Journal of more than $2.5 trillion in subprime loans made since 2000 shows that as the number of subprime loans mushroomed, an increasing proportion of them went to people with credit scores high enough to often qualify for conventional loans with far better terms.

For more, see Subprime Debacle Traps Even Very Credit-Worthy (As Housing Boomed, Industry Pushed Loans To a Broader Market) (might require subscription; if no subscription, try here, courtesy of The Denver Post).