What Is Subprime Lending? In America, subprime mortage lending means lending that does not meet Fannie Mae or Freddie Mac guidelines. Wikipedia's entry says that subprime lending is also known as second chance lending, near-prime and B-paper. In 2006, the Wall Street Journal wrote that 61% of all borrowers receiving subprime loans had cr Only prime borrowers — those with the best credit scores — get the prime rate. It means lending at a higher interest rate than the prime rate. These can include settlement costs, discount points, and other fees. There may also be a penalty charged for paying off your original loan early, although some states prohibit this.
