Subprime or poorly documented loans are absolutely fine and actually help people, as long as they are marked as subprime loans. The problem with 2008/2009 was that subprime loans were being marked as AAA, because that was the fraudulent part of it. And then these subprime loans were getting packaged together with AAA loans, and caused the quality to degrade, dropping asset prices, etc.
As long as the loans are marked appropriately and the proper risk is taken with interest rates and there is nothing predatory or exploitative about them, there is nothing wrong with companies lending to subprime borrowers. In fact, it helps people break the circle of poverty by investing in them, again as long as it's not predatory.
As long as the loans are marked appropriately and the proper risk is taken with interest rates and there is nothing predatory or exploitative about them, there is nothing wrong with companies lending to subprime borrowers. In fact, it helps people break the circle of poverty by investing in them, again as long as it's not predatory.