Alt-A

The speaker discusses the difference between Alt-A and subprime loans.  Alt-A loans are taken by borrowers who have good credit scores but other factors such as documented income and down payment.

The term Alt-A refers to a loan which is issued to a borrower with less than the ideal characteristics.  Alt-A loans have more risk than prime conforming loans which are purchased by Freddie Mac/Fannie Mae but are less risky than sub-prime loans which are issued to the riskiest borrowers.  Alt-A lo