subprime

adjective
sub·​prime | \ ˈsəb-ˌprīm How to pronounce subprime (audio) \

Definition of subprime

1 : having or being an interest rate that is higher than a prime rate and is extended chiefly to a borrower who has a poor credit rating or is judged to be a potentially high risk for default (as due to low income) subprime mortgages a subprime loan
2 : extending or obtaining a subprime loan subprime lenders subprime borrowers

Examples of subprime in a Sentence

Recent Examples on the Web Now, as the country reopens for business, lender accommodations are starting to disappear, and Van Alst said car repossessions are rising among subprime borrowers. NBC News, "Many auto lenders offered deferrals to borrowers during Covid. The country's biggest subprime lender did not.," 30 Apr. 2021 In short, Infinity Q was using a derivative that was an abstraction of an abstraction of reality, in much the same way the subprime-mortgage-crisis derivatives were bets on bets on bets on home prices. Michael Foster, Forbes, "Inside Wall Street’s Latest $500-Million Flameout," 27 Apr. 2021 And actually, the likelihood of subprime loans being given to non-white borrowers compared to white borrowers increased the higher the income bracket. Whizy Kim, refinery29.com, "How Credit Scores Rule — & Ruin — Our Lives," 16 Mar. 2021 The removal of the Lenape people from their home, on what is now the island of Manhattan, by Dutch colonists mirrors the removal of a Lenape family from their home in the wake of the subprime mortgage crisis of 2008. oregonlive, "9 theatrical experiences to add to your calendar: Portland spring arts guide," 23 Mar. 2021 Consumer advocates claim the practice continues in a different form — reverse redlining, which targets minorities with predatory lending, such as subprime mortgages. Ramishah Maruf, CNN, "Amalgamated becomes the first major US bank to endorse reparations," 17 Mar. 2021 The original rules were fully set into place in 2012 and were tied to the Housing and Economic Recovery Act of 2008, legislation that was passed to address the subprime mortgage crisis that led to the Great Recession. Fortune, "The COVID relief bill doesn’t raise taxes on gig workers," 13 Mar. 2021 In 2008, in the aftermath of the subprime mortgage crisis, non-business bankruptcy filings exceeded 1 million and reached a high of 1.5 million in 2010. Whizy Kim, refinery29.com, "Why Declaring Bankruptcy Can Be Good, Actually," 1 Mar. 2021 John Paulson made billions of dollars by anticipating the subprime mortgage crisis, but his returns have been lackluster this decade. John Detrixhe, Quartz, "Is this the world’s best stock picker?," 27 Feb. 2021

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'subprime.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of subprime

1995, in the meaning defined at sense 1

Keep scrolling for more

Learn More about subprime

Time Traveler for subprime

Time Traveler

The first known use of subprime was in 1995

See more words from the same year

Statistics for subprime

Last Updated

10 May 2021

Cite this Entry

“Subprime.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/subprime. Accessed 13 May. 2021.

Style: MLA
MLACheck Mark Icon ChicagoCheck Mark Icon APACheck Mark Icon Merriam-WebsterCheck Mark Icon

Keep scrolling for more

More Definitions for subprime

subprime

adjective
sub·​prime | \ ˈsəb-ˌprīm How to pronounce subprime (audio) \

Legal Definition of subprime

1 : having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers subprime mortgages
2 : extending or obtaining a subprime loan subprime lenders subprime borrowers

More from Merriam-Webster on subprime

Nglish: Translation of subprime for Spanish Speakers

Britannica English: Translation of subprime for Arabic Speakers

Comments on subprime

What made you want to look up subprime? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

Test Your Vocabulary

Star Wars Words Quiz

  • cu jedi training
  • The bounty portion of bounty hunters (such as Boba Fett) comes from a Latin word meaning
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
Universal Daily Crossword

A daily challenge for crossword fanatics.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!