The Subprime Mortgage Market Analytical Essay by Nicky

The Subprime Mortgage Market
An overview of the subprime mortgage market's collapse.
# 147367 | 2,307 words | 3 sources | APA | 2010 | US
Published on Mar 27, 2011 in Business (Finance, Investment and Banking) , Hot Topics (General)


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Description:

The paper defines the subprime mortgage, compares it to prime loans and examines the benefits these mortgages create for homeowners. The paper then identifies the factors that contributed to the subprime market growth and eventually caused the subprime bust. The paper notes the various types of subprime mortgages and concludes with recommendations for future research.

Outline:
Introduction
Defining the Subprime Mortgage
Benefits of the Subprime Mortgage
Subprime Mortgage Fallout and the Ongoing Boom in Lending
Types of Subprime Mortgages
Discussion and Conclusion

From the Paper:

"The subprime mortgage market was an important segment of the mortgage market in the 1990s and early 2000s. Subprime mortgages rose from approximately ten percent of the mortgage market to twenty percent in 2005 and 2006 however, the market has experienced a hardship since late 2006 and early 2007. In the fourth quarter of 2007, 17.31 percent of subprime loans were delinquent and 8.65 percent of subprime loans were in the foreclosure process. The work of Dell-Ariccia, Igan and Laeven (2008) entitled: "Credit Booms and Lending Standards: Evidence from the Subprime Mortgage Market" states that the subprime market has "expanded rapidly" over the past ten years and has evolved "from a small niche segment to a major portion of the U.S. mortgage market." (Dell-Ariccia, Igan and Laeven, 2008)"

Sample of Sources Used:

  • Utt, Ronald D. (2008) The Subprime Mortgage Market Collapse: A Primer on the Causes and Possible Solutions. Backgrounder 2127 The Heritage Foundation. Online available at: http://www.heritage.org/research/economy/bg2127.cfm
  • The Subprime Mortgage Market (2008) National and Twelfth District Developments. Federal Reserve Bank of San Francisco. Online available at: http://www.frbsf.org/publications/federalreserve/annual/2007/subprime.pdf
  • Chomsisengphet, S. and Pennington-Cross, a. (2006) The Evolution of the Subprime Mortgage Market. Federal Reserve Bank of St. Louis (2001) Online available at> http://research.stlouisfed.org/publications/review/06/01/ChomPennCross.pdf

Cite this Analytical Essay:

APA Format

The Subprime Mortgage Market (2011, March 27) Retrieved April 01, 2020, from https://www.academon.com/analytical-essay/the-subprime-mortgage-market-147367/

MLA Format

"The Subprime Mortgage Market" 27 March 2011. Web. 01 April. 2020. <https://www.academon.com/analytical-essay/the-subprime-mortgage-market-147367/>

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