Subprime Crisis Background Information
Subprime crisis background information
From Wikipedia, the free encyclopedia The neutrality of this article is disputed. Relevant discussion may be found on the talk page. Please do not remove this message until thedispute is resolved. (July 2009)
Main article: Subprime mortgage crisis
This article provides background information helpful to understanding the subprime mortgage crisis. It discusses subprime lending, foreclosures, risk types, and mechanisms through which various entities involved are affected by the crisis.
Contents
[hide]
• 1 Subprime lending
• 2 A plain-language overview
• 3 Stages of the crisis
• 4 The subprime mortgage crisis in context o 4.1 Subprime market data o 4.2 Household debt statistics o 4.3 Financial sector debt statistics o 4.4 Credit risk
• 5 Understanding the risks types involved in the subprime crisis
• 6 Effect on corporations and investors
• 7 Understanding financial institution solvency
• 8 Understanding the events of September 2008 o 8.1 Liquidity risk and the money market funding engine o 8.2 Key risk indicators
• 9 Credit default swaps and the subprime mortgage crisis
• 10 Effect on the Money Supply
• 11 Vicious Cycles o 11.1 Cycle One: Housing Market o 11.2 Cycle Two: Financial Market and Feedback into Housing Market
• 12 Understanding the shadow banking system
• 13 References
• 14 External links
[edit]Subprime lending
The U.S. Federal Deposit Insurance Corporation (FDIC) has defined subprime borrowers and lending: "The term subprime refers to the credit characteristics of individual borrowers. Subprime borrowers typically have weakened credit histories that include payment delinquencies, and possibly more severe problems such as charge-offs, judgments, and bankruptcies. They may also display reduced repayment capacity as measured by credit scores, debt-to-income ratios, or other criteria that may encompass borrowers with incomplete credit histories. Subprime loans are loans to borrowers
From Wikipedia, the free encyclopedia The neutrality of this article is disputed. Relevant discussion may be found on the talk page. Please do not remove this message until thedispute is resolved. (July 2009)
Main article: Subprime mortgage crisis
This article provides background information helpful to understanding the subprime mortgage crisis. It discusses subprime lending, foreclosures, risk types, and mechanisms through which various entities involved are affected by the crisis.
Contents
[hide]
• 1 Subprime lending
• 2 A plain-language overview
• 3 Stages of the crisis
• 4 The subprime mortgage crisis in context o 4.1 Subprime market data o 4.2 Household debt statistics o 4.3 Financial sector debt statistics o 4.4 Credit risk
• 5 Understanding the risks types involved in the subprime crisis
• 6 Effect on corporations and investors
• 7 Understanding financial institution solvency
• 8 Understanding the events of September 2008 o 8.1 Liquidity risk and the money market funding engine o 8.2 Key risk indicators
• 9 Credit default swaps and the subprime mortgage crisis
• 10 Effect on the Money Supply
• 11 Vicious Cycles o 11.1 Cycle One: Housing Market o 11.2 Cycle Two: Financial Market and Feedback into Housing Market
• 12 Understanding the shadow banking system
• 13 References
• 14 External links
[edit]Subprime lending
The U.S. Federal Deposit Insurance Corporation (FDIC) has defined subprime borrowers and lending: "The term subprime refers to the credit characteristics of individual borrowers. Subprime borrowers typically have weakened credit histories that include payment delinquencies, and possibly more severe problems such as charge-offs, judgments, and bankruptcies. They may also display reduced repayment capacity as measured by credit scores, debt-to-income ratios, or other criteria that may encompass borrowers with incomplete credit histories. Subprime loans are loans to borrowers
References: