Loans And Mortgages Information

Beginning in 2006, with the growing crisis in the U.S., has begun to lose jobs and wages. People began to stop paying the mortgage rate and the economic system is jumped by the banks continued to lend to people at high risk of insolvency by giving subprime mortgages, literally “below the ideal.”

Since I have come to the surface of the first default of certain companies and hedge funds that have Americans focus on the subprime sector, the stock exchanges worldwide have suffered violent shocks, due to the crisis in the U.S. real estate sector.

The subprime mortgage crisis has affected all markets that have lost millions of dollars. Since the beginning of l Fbi has investigated 14 financial institutions for the scandal of loans to entities that could not be viable.

Even in Italy, the crisis has been felt. In 2008 the chairman of Consob Lamberto Cardia in its annual report said:

We are experiencing a period of great uncertainty for the integrity and stability of the financial system. The time is ripe for a revision of the system and of the Supervisory Authority also to put an end to situations of uncertainty and the risks of duplication of effort.

According to the President, we need a reform of Consol to simplify the regulatory framework of financial transposing the EU directives and the reform of savings. At this point it is natural to ask: Why are the institutions responsible for inspections have left to do? Where the credit rating agencies?

Because of the subprime mortgage crisis, Lehman Brothers, one of the largest merchant banks in the U.S., has seen its capitalization literally going to peak this year.

In February 2007 the shares in the company worth $ 83.3-acting, last week the stock oscillated about $ 3.65, a few days ago the final collapse: the value of the title came to 31 cents. The debt amounts to some 613 billion dollars and is the largest bankruptcy ever in the financial world. The bank has also beaten the crack of Worldcom.

What is the dumb subprime? What are the origins?

According to the definition of the Italian Stock Exchange: “I have subprime loans or loans granted to customers defined as high risk. They are called subprime loans, because, because of their greater risk and subject to which the creditor, are not defined as primary, below to debts primary (first) representing the loans in favor of subjects with a history of credit and guarantees sufficiently reliable. “

This type of credit spread in the United States has access to the credit market to consumers who would not have had otherwise. Many are the opponents of this technique: accuse the utilities companies to implement predatory practices, accepting clients who were clearly not the resources to meet the debts. Clearly, many borrowers were insolvent, and many companies providing application was submitted to bankruptcy.