The Marketing of Subprime Mortgages in the United States

Open Access
Budin, Jacob Daniel
Area of Honors:
Bachelor of Science
Document Type:
Thesis Supervisors:
  • Brent William Ambrose, Thesis Supervisor
  • Jennifer Chang Coupland, Honors Advisor
  • marketing
  • subprime
  • mortgages
  • real estate
  • united states
  • america
In this thesis, I explore the four traditional marketing components: product, price, distribution, and promotion, of the United States subprime mortgage market. Born from federal deregulation in the 1980s, subprime lending offered American consumers with poor credit, insufficient documentation, or excessive debt access to mortgages. The government aimed to increase homeownership while at the same time allowing businesses to profit from an untapped supply of homebuyers and consumers to own homes they would otherwise not be able to secure financing for. Due to the complexity and expense of home buying, many players—including the government and nonprofits—participated in the distribution and promotion of subprime mortgages. The American Dream, centered in homeownership as the ideal, helped drive the zeitgeist. Due to subprime mortgages’ role in the housing bubble and subsequent recession, the analysis of these components is fundamental to understanding what happened and, more importantly, how we might prevent it in the future.