Two classes of high-risk loan are identified:
- Subprime, meaning that the borrower has poor credit history,
- Alt-A, meaning that the borrower has good credit, but the loan terms make the loan higher risk. (This includes a high loan-to-property-value ratio, no documentation of the borrower's income, adjustable rate loans, etc)
While the exact definitions are controversial, in any case few Alt-A loans would count towards affordable housing goals. So the impetus to make these loans is not affordable housing policies.