I'm mainly confused about these sub-prime mortgage loans. So essentially, people who had pretty lousy credit were able to get home loans, albeit with high interests rates. And from what I gather, people with not such bad credit were also (deceptively) given these loans when they would've actually qualified for a prime loan with a lower interest rate. My question is why would lenders provide these people with loans, knowing they probably wouldn't be able to pay them off. Is that the risk factor I keep hearing about? It just sounds like stupidity to me. How did they expect to make any money?

Just curious.