Wells Fargo & Co. announced this month it would reduce minimum credit scores for certain mortgages eligible for government backing, prompting some declarations that subprime mortgages were making a comeback.
After everything the mortgage industry has gone through, why would Wells Fargo want to go there again?
The short answer: It doesn’t.
Part of the issue is confusion over what actually constitutes a subprime loan. Unlike a prime mortgage, there isn’t a simple definition of a “subprime” loan.