|
In the epicenter of events
First pips "," spark a domino effect on the American financial
market, has become a crisis in the market, subprime loans (low-quality mortgage
loans). John Lipski calls the American market low Bad Credit Mortgage epicentre observedin the recent financial market volatility. The opinion of one of the leaders of
the IMF and shared the American National Association of realtors (NAR).
Correspondent Expert "Kazakhstan" there reported that the situation
in payments to low Remortgage market has deteriorated significantly over the pasttwo years, matched with a nationwide decline in housing sales and lower its costs.
One of the main sources of increasing the number of mortgage defaults has also
been lending practices, which abused financially naive customers, offering them
at first sight attractive deal. This high-loans issued to borrowers with
questionable credit reputation without either Glide, or those whose ability to
pay the Loan is limited. It should be noted that this category of the population until early this century has had almost no chance to get a long-term
loan, and especially so extensive as mortgages.
The first change in this state of affairs began to occur in early 1990 - x,
where the proportion of owners in the housing market in the United States
remained relatively stable for a long time. The experts talked about the
stagnation of this market segment. To revive business, and creditors primarily
on mortgage lenders have been providing Mortgages loans on more favorable terms. Combined with low bank rate of these factors led the dream to have their own
home has become a reality for many more people. According to the NAR: "If
in the beginning of the XXI century, the practice of issuing high-mortgage
loans absent, in the past three years, the percentage of this type of Mortgage in total loans for the purchase of housing has risen to 20%. As a result, todayevery seventh-borrower pays its landlord for subprime loan scheme. "
Aira Reingold, executive director of the American National Association of
Consumer lawyers alike described the events that led to the current crisis in
the American financial market: "For a long time we had a thriving housing
market. Prices for homes rose to a level that buying housing has become
inaccessible for the majority of Americans. "In kind" such a
development version of the economic situation would have gone up interest
rates, sales would have fallen, and home prices fell would. This is what
happened to a couple of years ago. In reality, instead of reducing the cost of Bad Credit lending boom began. There is a huge demand for housing loans,and the lending industry an urgent need for funds, of which these loans issue.
"
|
