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Looser Lending Had Upside: New Homeowners Subprime loans have put upwards of a million people out of their homes through foreclosures. But looser lending standards for more conventional loans also permitted millions to buy homes in recent years. Some economists see that as a major achievement.

Economy

Looser Lending Had Upside: New Homeowners

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Looser Lending Had Upside: New Homeowners

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Subprime loans are likely to put upwards of a million Americans out of their homes through foreclosures. The payments on many of these unorthodox adjustable rate mortgages are going through the roof and homeowners can't afford them.

But at the same time, looser lending standards for more traditional kinds of loans permitted millions of Americans to buy homes in recent years ... and keep them. Some economists see that as a major achievement.