The mortgages market is in upheaval, with the sudden tightening of credit on high-risk sub prime mortgage fiasco led to a property price crash with devastating effects on the whole economy, having far reaches throughout the mortgage industry that it directly affected us especially those who are in the real estate industry. In 2006, 70% of US mortgages were financed by relying on the credit markets instead of government-backed secured loans. But in August, it was realized that many of the mortgage-backed securities they were being sold by the banks were much more risky than they had realized and nearly half of all those with sub-prime mortgages were behind on their payments, and 20% are expected to go into foreclosure - thus putting their investments at risk. And so they have stopped buying mortgage-backed securities and loans altogether, unless they are backed by the government.

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