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:
the United States subprime home loans to lenders by the flooding
Subprime home loans default rate rise will first give lenders loss in America's housing loan losses, serious rate is increased, but did not achieve 1998 high. And subprime home loans and severe losses rate (loss severity ratio) depends on several factors: employment is stable, house price trends, whether the borrower can get credit to buy new house and refinancing whether can have to, interest rate trend, as collateral with the result of the house. Among them, house prices fell sharply as the direct factors cause the crisis.
subprime housing loan loss rate over the source: the mortgage bankers association
Subprime mortgage losses in the history of serious rate between 20% to 40%, down in recent years. But in the United States by HSBC on subprime home loans in 2001 when the real estate market depression of serious loss rates lower than 20%, in the second quarter of 2007, the loss rate is as high as 50% serious.
the subprime losses to a rough estimate of the unit: $source: Goldman sachs research departments
based on subprime home loans are bad loans and to estimate the loss that subprime home loans scale loss. When the subprime home loans bad loans is 20%, and severe losses rate was 35%, the loss scale will reach $116.9 billion, and when loss serious rate increased to 50%, the loss scale will be increased to 167 billion dollars. If the ALT-A loan the possible loss of A, into consideration in two loss rate of total loss under serious scale will respectively increased to 151.9 billion and 217 billion dollars. In fact, the loss may be far more than the Numbers.
the United States subprime home loans to bond the loss caused by institutional investors
Due to the residential mortgage securities (MBS) and its derivative of the different slices of the cdos cash flow directly or indirectly from subprime home loans, therefore, these subprime mortgage bonds to institutional investors with the foregoing the loss caused by the subprime loan loss rate there is a close relationship. In addition, the investment of MBS or the loss of the CDO investors hold still depends on whether the grades are high in the asset pool subprime home loans and ordinary loans and structure, the proportion of the asset pool subprime home loans in the area (such as California, Florida and Ohio loan loss rate and the proportion of foreclosure is higher), and invest in the CDO financing lever.
Subprime home loans default rate rise will first give lenders loss in America's housing loan losses, serious rate is increased, but did not achieve 1998 high. And subprime home loans and severe losses rate (loss severity ratio) depends on several factors: employment is stable, house price trends, whether the borrower can get credit to buy new house and refinancing whether can have to, interest rate trend, as collateral with the result of the house. Among them, house prices fell sharply as the direct factors cause the crisis.
subprime housing loan loss rate over the source: the mortgage bankers association
Subprime mortgage losses in the history of serious rate between 20% to 40%, down in recent years. But in the United States by HSBC on subprime home loans in 2001 when the real estate market depression of serious loss rates lower than 20%, in the second quarter of 2007, the loss rate is as high as 50% serious.
the subprime losses to a rough estimate of the unit: $source: Goldman sachs research departments
based on subprime home loans are bad loans and to estimate the loss that subprime home loans scale loss. When the subprime home loans bad loans is 20%, and severe losses rate was 35%, the loss scale will reach $116.9 billion, and when loss serious rate increased to 50%, the loss scale will be increased to 167 billion dollars. If the ALT-A loan the possible loss of A, into consideration in two loss rate of total loss under serious scale will respectively increased to 151.9 billion and 217 billion dollars. In fact, the loss may be far more than the Numbers.
the United States subprime home loans to bond the loss caused by institutional investors
Due to the residential mortgage securities (MBS) and its derivative of the different slices of the cdos cash flow directly or indirectly from subprime home loans, therefore, these subprime mortgage bonds to institutional investors with the foregoing the loss caused by the subprime loan loss rate there is a close relationship. In addition, the investment of MBS or the loss of the CDO investors hold still depends on whether the grades are high in the asset pool subprime home loans and ordinary loans and structure, the proportion of the asset pool subprime home loans in the area (such as California, Florida and Ohio loan loss rate and the proportion of foreclosure is higher), and invest in the CDO financing lever.
