One minute primer on subprime mortgages

The delivery is a bit dry, but the content is clear enough; here is a one-minute primer on subprime loans. The main lesson is that if you are a realtor and you sell one of these loans, you get more money. What could be simpler? Well, you would think that people would take a look at the repayment capacity of people taking out these loans. Judging by the massive increase in subprime defaults, that simple point was not well understand by many lenders.