Origins of the subprime mortgage turmoil Over the past quarter century, advances in information technology, the development of credit-scoring techniques, and the emergence of a large secondary market, among other factors, have significantly increased access to mortgage credit.
From 1994 to 2006, subprime lending increased from an estimated $ billion, or 4.5 percent of all one-to-four family mortgage originations, to $ billion, or 20 percent of originations (Inside Mortgage Finance, 2007). Responsible subprime lending expanded credit to borrowers with imperfect or limited credit histories. More renters became homeowners than would have otherwise.