Assuming everything is satisfactory, the lender will issue a formal mortgage offer.

Because these loans did not receive government subsidies, Sallie Mae and other private lenders could issue them at a higher interest rate.

But in 1994, the lenders issued a foreclosure notice.

In particular, some economists have been concerned that as the housing market softens, lenders have issued mortgages to people who can't afford to pay them back.

After a few months, the lender would issue a market-rate mortgage and the homeowner would then begin making payments.

For example, he said, lenders frequently issue mortgage commitments subject to an appraisal of the property.

From 2003 forward, private lenders increased their share of subprime lending, and later issued many of the riskiest loans.

To make sure that it was, the lenders issued "Gregory Bucks," redeemable only with participating merchants in the town of 1,500.

If lenders cannot see the borrower's credit report, it is unlikely the lender will issue a loan in the borrower's name.

Mr. Bell said lenders were issuing reverse mortgages at a monthly rate of about 8,000, compared with roughly 6,000 a year ago.