he cooling off of the housing market in many areas of the United States, combined with economic turbulence, has put subprime mortgage loans in the spotlight. Several high-profile, high-flying subprime lending companies have failed this year as a result of late payments and foreclosures among their borrowers.

Here are some questions and answers to help you better understand the situation, and how the banking industry is moving forward to meet the credit needs of communities across the country.

Subprime mortgages were developed to assist borrowers with a less-than-perfect credit history. The word "subprime" refers to a borrower's credit quality. These loans feature interest rates that are higher than overall market rates.

While many different types of lenders make mortgage loans, most subprime lending is done outside of the banking industry — often by mortgage brokers and mortgage companies that may not be subject to the same scrutiny as federally insured banks and savings institutions.

Regulated banks and savings institutions have made very few subprime loans and most local community banks have made none at all.