The subprime mortgage market—which consists of loans to borrowers with high credit risk and the mechanisms that have evolved to originate, service, and finance those loans—is rapidly contracting due to mounting defaults and delinquencies. As a result, a number of allegations have been made against market participants in recent subprime-related lawsuits.

To address these matters from an economic perspective, NERA’s Securities and Finance Practice has created NERA Insights: Subprime Lending Series, a series of papers dedicated to the analysis of the subprime lending crisis.