Author Reference resources: new home loans, home loan application, repair loan, home loan modification, homes equity, load rates, lic home loan www.himloan.infoA subprime mortgage crisis:residential mortgage-backed securities (MBS) balance and the issuer structure source: United States federal reserve bank. American MBS scale increases year by year, government agencies Ginnie Mae, Freddie Mac and Fannie Mae issue of the proportion of the MBS declined year by year, and non-governmental organizations, the proportion is rising year by year. To 2007 at the end of the quarter, MBS balance about $5.984 trillion, of which the government body weight from 2001 in to 87% to 67%, non-governmental institutions increased from 13% to 33%. MBS mortgage balance of balance (about $10.4 trillion) than of up to 57%.
Such as non-governmental organizations issue of MBS as base asset class subdivision, but found to subprime home loans for foundation assets to the total MBS launched MBS the proportion of balance, up from 3% in 2001 to 13% in 2006, subprime home loans to ARM based in all of the assets of the MBS the proportion of MBS from 11% in 2002 to 2007 rapidly rising 29% at the end of the quarter, about $1.7406 trillion. In these to ARM of the assets of the basis of MBS, issue the structure of subject of important changes also occurred, government agencies the proportion of the down from 50% in 2002 to 28% in 2007 at the end of the first quarter, the proportion of the non-governmental organizations, from 50% in 2002 to 2007 by the end of the first quarter increased 72%. Visible, with subprime loans as the foundation assets with the increase of the ratio of MBS makes the whole MBS market and other credit derivatives market CDO subprime home loans by the influence on the quality of increase, and the whole subprime home loans with the product quality related structure, the proportion of the ARM, the bigger the subprime home loans to interest rates and house prices overall quality factors such as the more sensitive to it. Therefore, the size of the market and as MBS based assets of mortgage structure affect subprime loans crisis market impact strength.
MBS and to subprime loans as the foundation of the assets of the MBS in recent years the rapid development, from the suppliers' look, residential mortgage, the rapid expansion of the scale will accompany the expansion of the scale of asset securitization; From see home-textile, MBS relative to the same rating company for bonds, and have higher yields, and at the same time, rising house prices and low interest rates that the risk premium is low, make the products become institutional investors in leveraged lending at high investment objects. And when the subprime loans appear credit risk, related bonds because the default rate and appear cash flow problem, the evolution of market risk.
Such as non-governmental organizations issue of MBS as base asset class subdivision, but found to subprime home loans for foundation assets to the total MBS launched MBS the proportion of balance, up from 3% in 2001 to 13% in 2006, subprime home loans to ARM based in all of the assets of the MBS the proportion of MBS from 11% in 2002 to 2007 rapidly rising 29% at the end of the quarter, about $1.7406 trillion. In these to ARM of the assets of the basis of MBS, issue the structure of subject of important changes also occurred, government agencies the proportion of the down from 50% in 2002 to 28% in 2007 at the end of the first quarter, the proportion of the non-governmental organizations, from 50% in 2002 to 2007 by the end of the first quarter increased 72%. Visible, with subprime loans as the foundation assets with the increase of the ratio of MBS makes the whole MBS market and other credit derivatives market CDO subprime home loans by the influence on the quality of increase, and the whole subprime home loans with the product quality related structure, the proportion of the ARM, the bigger the subprime home loans to interest rates and house prices overall quality factors such as the more sensitive to it. Therefore, the size of the market and as MBS based assets of mortgage structure affect subprime loans crisis market impact strength.
MBS and to subprime loans as the foundation of the assets of the MBS in recent years the rapid development, from the suppliers' look, residential mortgage, the rapid expansion of the scale will accompany the expansion of the scale of asset securitization; From see home-textile, MBS relative to the same rating company for bonds, and have higher yields, and at the same time, rising house prices and low interest rates that the risk premium is low, make the products become institutional investors in leveraged lending at high investment objects. And when the subprime loans appear credit risk, related bonds because the default rate and appear cash flow problem, the evolution of market risk.
