For example, heightened risk taking by investors and elevated leverage in large financial institutions and in shadow banking activities were among the factors that turned a downturn in the U.S.
subprime mortgage market into a global financial crisis.
Not exact matches
Borrowers refinancing
into FHA from the
subprime market are better off, even with slightly higher
mortgage insurance premiums, because FHA insurance gives them access to substantially lower interest rates, and lowers their overall
mortgage costs.
By then, though, the company had already taken a deeper dive
into credit - default swaps, including an expansion
into the
subprime mortgage market that would eventually trigger the improbable.
Lehman's decision to shutter the lending unit, BNC
Mortgage, makes it the latest casualty in the subprime mortgage meltdown that started earlier this year and rippled into the broader credit markets starting in la
Mortgage, makes it the latest casualty in the
subprime mortgage meltdown that started earlier this year and rippled into the broader credit markets starting in la
mortgage meltdown that started earlier this year and rippled
into the broader credit
markets starting in late July.
Agitation over the
subprime residential
mortgage debacle bled
into the commercial real estate debt
markets this summer, effectively strangling liquidity.
But the convergence of the
subprime mortgage meltdown, widespread apprehension of a slowing economy and other
market forces has transformed a bull run for the ages
into a wild ride that has bruised the portfolios of office REIT investors.
Buyers of distressed debt are benefiting from the residential
subprime mortgage crisis, which spilled
into the CMBS
market and virtually shut it down.
NAR analysts think that's a reasonable assumption given the 56 percent rise the federal
mortgage insurance agency has seen since private lenders pulled back on their
subprime offerings, which had cut
into the FHA's
market share during the housing boom.