Weekly Alibi . Until last summer, Michael and Grace Tenorio of Albuquerque were cruising happily down the retirement road. They could manage that, even though their loan carried a relatively stiff 10.5 percent interest rate. But the Tenorios weren't ready for what was on the horizon.
Subprime lending refers to lenders who serve people with less than perfect credit ratings.
The borrowers pay more than the prime lending rate on their loans. It's the modern-day equivalent of redlining, the old practice of denying undesirable neighborhoods any housing financing, the organization said. The Tenorios' trouble began when they decided to co-sign a loan on a truck their daughter was buying. For awhile, it was no problem. Their daughter made the payments, but then she began to fall behind.