Subprime loans made to higher-risk borrowers are roiling the mortgage market because rising interest rates and stagnant or declining home values have led to trends similar to the following:

 

• Soaring subprime mortgage defaults and foreclosures.

 

• More than 20 subprime lenders (including some of the nation’s largest, such as New Century Financial Corp.) are going out of business.

 

• State and federal legislators and regulators proposing aggressive initiatives