SlideShare una empresa de Scribd logo
1 de 14
Descargar para leer sin conexión
 
“ What began as a tremor in the sub-prime mortgage market that affected a relative few,  has sadly gained momentum, creating a broader credit crisis that continues to threaten the middle class and overall economic growth.” -  Senator Jack Reed (D-RI)
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
THE MODEL OF MORTGAGE LENDING Bank grants mortgage   Bank grants mortgage  Home buyer pays the bank  Bank sells mortgage bonds    Home buyer pays the bank Bank pays bondholders 2 4 1 3 1 2 1 1 Keys:  Safeguard: Flow Of Money  Home Checks  Independent Checks 2 2 3 4 Mortgage Broker Home Appraisers Rating Agencies Home Buyer Home Buyer Mortgage Bond Market Bank Bank  Home Valuation Income Check Repayments Mortgage Loan Repayments Mortgage Bond Bond Payments Mortgage loans
THE MODEL OF MORTGAGE LENDING Homebuyer defaults  Homebuyer defaults Bank repossess the loans  Bond payments cease   Bond markets dry up Bondholders repossess 3 2 4 1 2 1 1 1 Keys:  Safeguard: Flow Of Money  Flawed  × Flow stops  Home Checks  Independentchecks 2 2 3 4 Mortgage Broker Home Appraisers Rating Agencies Home Buyer Home Buyer Mortgage Bond Market Bank Bank  Home Valuation Income Check ×  Repayments stops ×  Mortgages Dry up ×  Mortgage Bond Defaults ×  Repayments stops ×  Bond Payments Stop ×  Mortgage Loan
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Increase In Unemployment
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
 

Más contenido relacionado

La actualidad más candente

Us Credit Crisis and Feds Response
Us Credit Crisis and Feds ResponseUs Credit Crisis and Feds Response
Us Credit Crisis and Feds Responseokili
 
Bubble spotting - Subprime Mortgage crisis / Housing bubble 2007-2008
Bubble spotting -  Subprime Mortgage crisis / Housing bubble 2007-2008Bubble spotting -  Subprime Mortgage crisis / Housing bubble 2007-2008
Bubble spotting - Subprime Mortgage crisis / Housing bubble 2007-2008Benjamin Van As
 
imapct of financial crisis and role of financial institutions in this crisis
imapct of financial crisis and role of financial institutions in this crisisimapct of financial crisis and role of financial institutions in this crisis
imapct of financial crisis and role of financial institutions in this crisisRanjith Reddy
 
The subprime mortgage crisis
The subprime mortgage crisisThe subprime mortgage crisis
The subprime mortgage crisistuxxa1
 
US-Financial Crisis
US-Financial CrisisUS-Financial Crisis
US-Financial Crisisloneranger85
 
Subprime crisis
Subprime crisisSubprime crisis
Subprime crisissamir2512
 
Financial crisis ppt final
Financial crisis ppt finalFinancial crisis ppt final
Financial crisis ppt finalmegepete
 
The Credit Crisis Explained
The Credit Crisis ExplainedThe Credit Crisis Explained
The Credit Crisis Explainedjohnalan
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisiskamal9089
 
The subprime crisis in 2008
The subprime crisis in 2008The subprime crisis in 2008
The subprime crisis in 2008Warren Kang
 
Housing crisis in US
Housing crisis in USHousing crisis in US
Housing crisis in USJyotika Kaura
 
Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008Srikanth Akella
 
Sub Prime Crisis And Its Impact
Sub Prime Crisis And Its ImpactSub Prime Crisis And Its Impact
Sub Prime Crisis And Its ImpactNitin Agarwal
 
sub prime mortgage crisis
sub prime mortgage crisissub prime mortgage crisis
sub prime mortgage crisisisanox98
 

La actualidad más candente (20)

SubPrime Crisis
SubPrime CrisisSubPrime Crisis
SubPrime Crisis
 
Causes of 2009 financial crisis in us
Causes of 2009 financial crisis in usCauses of 2009 financial crisis in us
Causes of 2009 financial crisis in us
 
Us Credit Crisis and Feds Response
Us Credit Crisis and Feds ResponseUs Credit Crisis and Feds Response
Us Credit Crisis and Feds Response
 
Bubble spotting - Subprime Mortgage crisis / Housing bubble 2007-2008
Bubble spotting -  Subprime Mortgage crisis / Housing bubble 2007-2008Bubble spotting -  Subprime Mortgage crisis / Housing bubble 2007-2008
Bubble spotting - Subprime Mortgage crisis / Housing bubble 2007-2008
 
imapct of financial crisis and role of financial institutions in this crisis
imapct of financial crisis and role of financial institutions in this crisisimapct of financial crisis and role of financial institutions in this crisis
imapct of financial crisis and role of financial institutions in this crisis
 
The subprime mortgage crisis
The subprime mortgage crisisThe subprime mortgage crisis
The subprime mortgage crisis
 
US-Financial Crisis
US-Financial CrisisUS-Financial Crisis
US-Financial Crisis
 
Subprime crisis
Subprime crisisSubprime crisis
Subprime crisis
 
Financial crisis ppt final
Financial crisis ppt finalFinancial crisis ppt final
Financial crisis ppt final
 
The Credit Crisis Explained
The Credit Crisis ExplainedThe Credit Crisis Explained
The Credit Crisis Explained
 
Global financial crisis
Global financial crisisGlobal financial crisis
Global financial crisis
 
Sub prime crisis
Sub prime crisisSub prime crisis
Sub prime crisis
 
The subprime crisis in 2008
The subprime crisis in 2008The subprime crisis in 2008
The subprime crisis in 2008
 
Housing crisis in US
Housing crisis in USHousing crisis in US
Housing crisis in US
 
US Financial Crisis
US Financial CrisisUS Financial Crisis
US Financial Crisis
 
Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008Financial crisis - The Great Depression and The Global Crisis 2008
Financial crisis - The Great Depression and The Global Crisis 2008
 
US Sub Prime Crisis
US Sub Prime CrisisUS Sub Prime Crisis
US Sub Prime Crisis
 
Sub Prime Crisis And Its Impact
Sub Prime Crisis And Its ImpactSub Prime Crisis And Its Impact
Sub Prime Crisis And Its Impact
 
sub prime mortgage crisis
sub prime mortgage crisissub prime mortgage crisis
sub prime mortgage crisis
 
Subprime crisis
Subprime crisisSubprime crisis
Subprime crisis
 

Similar a US Subprime Crisis

The devolution of appraisal and underwriting theory and practice
The devolution of appraisal and underwriting theory and practiceThe devolution of appraisal and underwriting theory and practice
The devolution of appraisal and underwriting theory and practiceAEI
 
03 This Month In Real Estate March Us 2010
03 This Month In Real Estate   March   Us 201003 This Month In Real Estate   March   Us 2010
03 This Month In Real Estate March Us 2010Keller Williams Careers
 
03 This Month In Real Estate March Us 2010
03 This Month In Real Estate   March   Us 201003 This Month In Real Estate   March   Us 2010
03 This Month In Real Estate March Us 2010Keller Williams Careers
 
This Month In Real Estate April 2010
This Month In Real Estate April 2010This Month In Real Estate April 2010
This Month In Real Estate April 2010Rob Aubrey
 
KTG w/ Sandy Leeds 2.9.10- "Hot Topics From the Financial Markets"
KTG w/ Sandy Leeds 2.9.10- "Hot Topics From the Financial Markets" KTG w/ Sandy Leeds 2.9.10- "Hot Topics From the Financial Markets"
KTG w/ Sandy Leeds 2.9.10- "Hot Topics From the Financial Markets" UT Austin McCombs School of Business
 
The Current Recession And Mortagage Foreclosure
The Current Recession And Mortagage ForeclosureThe Current Recession And Mortagage Foreclosure
The Current Recession And Mortagage ForeclosureMelissa Luster
 
A straight, broad highway to building wealth for middle and working class fam...
A straight, broad highway to building wealth for middle and working class fam...A straight, broad highway to building wealth for middle and working class fam...
A straight, broad highway to building wealth for middle and working class fam...AEI
 
American crises in 2007 hard copy
American crises in 2007 hard copyAmerican crises in 2007 hard copy
American crises in 2007 hard copyDharmik
 
This Month in Real Estate PowerPoint for U.S. Market - September 2010
This Month in Real Estate PowerPoint for U.S. Market - September 2010This Month in Real Estate PowerPoint for U.S. Market - September 2010
This Month in Real Estate PowerPoint for U.S. Market - September 2010Keller Williams Careers
 
12 This Month In Real Estate December Us
12 This Month In Real Estate   December   Us12 This Month In Real Estate   December   Us
12 This Month In Real Estate December UsKeller Williams Careers
 
Real Estate Market Essay
Real Estate Market EssayReal Estate Market Essay
Real Estate Market EssayRachelle Lewis
 

Similar a US Subprime Crisis (20)

Subprime
SubprimeSubprime
Subprime
 
THIS MONTH IN REAL ESTATE - MARCH 2010 - BRADENTON, SARASOTA, REAL ESTATE, IN...
THIS MONTH IN REAL ESTATE - MARCH 2010 - BRADENTON, SARASOTA, REAL ESTATE, IN...THIS MONTH IN REAL ESTATE - MARCH 2010 - BRADENTON, SARASOTA, REAL ESTATE, IN...
THIS MONTH IN REAL ESTATE - MARCH 2010 - BRADENTON, SARASOTA, REAL ESTATE, IN...
 
The devolution of appraisal and underwriting theory and practice
The devolution of appraisal and underwriting theory and practiceThe devolution of appraisal and underwriting theory and practice
The devolution of appraisal and underwriting theory and practice
 
This Month In Real Estate March 2010
This  Month In  Real  Estate   March 2010This  Month In  Real  Estate   March 2010
This Month In Real Estate March 2010
 
03 This Month In Real Estate March Us 2010
03 This Month In Real Estate   March   Us 201003 This Month In Real Estate   March   Us 2010
03 This Month In Real Estate March Us 2010
 
03 This Month In Real Estate March Us 2010
03 This Month In Real Estate   March   Us 201003 This Month In Real Estate   March   Us 2010
03 This Month In Real Estate March Us 2010
 
March 2010 Market Update
March 2010 Market UpdateMarch 2010 Market Update
March 2010 Market Update
 
2010 March This Month In Real Estate
2010 March This Month In Real Estate2010 March This Month In Real Estate
2010 March This Month In Real Estate
 
This Month In Real Estate April 2010
This Month In Real Estate April 2010This Month In Real Estate April 2010
This Month In Real Estate April 2010
 
KTG w/ Sandy Leeds 2.9.10- "Hot Topics From the Financial Markets"
KTG w/ Sandy Leeds 2.9.10- "Hot Topics From the Financial Markets" KTG w/ Sandy Leeds 2.9.10- "Hot Topics From the Financial Markets"
KTG w/ Sandy Leeds 2.9.10- "Hot Topics From the Financial Markets"
 
The Current Recession And Mortagage Foreclosure
The Current Recession And Mortagage ForeclosureThe Current Recession And Mortagage Foreclosure
The Current Recession And Mortagage Foreclosure
 
A straight, broad highway to building wealth for middle and working class fam...
A straight, broad highway to building wealth for middle and working class fam...A straight, broad highway to building wealth for middle and working class fam...
A straight, broad highway to building wealth for middle and working class fam...
 
American crises in 2007 hard copy
American crises in 2007 hard copyAmerican crises in 2007 hard copy
American crises in 2007 hard copy
 
Sept2010marketupdate
Sept2010marketupdateSept2010marketupdate
Sept2010marketupdate
 
September 2010 market update
September 2010 market updateSeptember 2010 market update
September 2010 market update
 
This Month in Real Estate PowerPoint for U.S. Market - September 2010
This Month in Real Estate PowerPoint for U.S. Market - September 2010This Month in Real Estate PowerPoint for U.S. Market - September 2010
This Month in Real Estate PowerPoint for U.S. Market - September 2010
 
This Month In Real Estate December Us
This Month In Real Estate December   UsThis Month In Real Estate December   Us
This Month In Real Estate December Us
 
December 2009 Market Data
December 2009 Market DataDecember 2009 Market Data
December 2009 Market Data
 
12 This Month In Real Estate December Us
12 This Month In Real Estate   December   Us12 This Month In Real Estate   December   Us
12 This Month In Real Estate December Us
 
Real Estate Market Essay
Real Estate Market EssayReal Estate Market Essay
Real Estate Market Essay
 

US Subprime Crisis

  • 1.  
  • 2. “ What began as a tremor in the sub-prime mortgage market that affected a relative few, has sadly gained momentum, creating a broader credit crisis that continues to threaten the middle class and overall economic growth.” - Senator Jack Reed (D-RI)
  • 3.
  • 4.
  • 5.
  • 6. THE MODEL OF MORTGAGE LENDING Bank grants mortgage Bank grants mortgage Home buyer pays the bank Bank sells mortgage bonds Home buyer pays the bank Bank pays bondholders 2 4 1 3 1 2 1 1 Keys: Safeguard: Flow Of Money Home Checks Independent Checks 2 2 3 4 Mortgage Broker Home Appraisers Rating Agencies Home Buyer Home Buyer Mortgage Bond Market Bank Bank Home Valuation Income Check Repayments Mortgage Loan Repayments Mortgage Bond Bond Payments Mortgage loans
  • 7. THE MODEL OF MORTGAGE LENDING Homebuyer defaults Homebuyer defaults Bank repossess the loans Bond payments cease Bond markets dry up Bondholders repossess 3 2 4 1 2 1 1 1 Keys: Safeguard: Flow Of Money Flawed × Flow stops Home Checks Independentchecks 2 2 3 4 Mortgage Broker Home Appraisers Rating Agencies Home Buyer Home Buyer Mortgage Bond Market Bank Bank Home Valuation Income Check × Repayments stops × Mortgages Dry up × Mortgage Bond Defaults × Repayments stops × Bond Payments Stop × Mortgage Loan
  • 8.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.