Subprime Mortgage Crisis

Guide Note:The Subprime Mortgage Crisis started in 2006 when home mortgage foreclosures spiked. These foreclosures were caused by the rise in interest rates, which hindered those with popular variable interest rate mortgages, causing an influx of loan defaults. This became a crisis when bad credit stemming from the U.S. markets started to conflict with the international economy in mid-2007.

Also try: Housing Bubble | High-Risk Mortgages | Mortgages | Lahde Capital

The Mahalo Top 7

Wikipedia: Subprime Mortgage Financial Crisis
Bloomberg.com: Special Report: Subprime Mortgage Meltdown
CNNMoney.com: Subprime blame game
Wikipedia: Subprime lending
60 Minutes: House Of Cards: The Mortgage Mess (January 27, 2008)
New York Times: Fed Shrugged as Subprime Crisis Spread (December 18, 2007)
YouTube: John Vogel Subprime Mess (Time 2:58)

Subprime Mortgage Crisis Recent News

Topix: Subprime Mortgages
Industry Week: U.S. Mortgage Crisis Could Cost Banks $650 Billion (April 14, 2008)
AFP: Credit Crisis Reveals America's Secret Financial Market (March 16, 2008)
WSJ.com: Fed Races to Rescue Bear Stearns In Bid to Steady Financial System (March 16, 2008)
Reuters: Housing Bust Means at Least 12 More Months of Pain (March 2, 2008)
Boston Herald: Mortgage Crisis Calls for Defense (February 25, 2008)
Reuters: Ohio on Front Line in U.S. Housing Meltdown (February 25, 2008)
CNNMoney: Foreclosures up 75 percent (January 29, 2008)
The New York Times: Loan Reviewer Aiding Inquiry Into Big Banks (January 27, 2008)
- "The agreement, which was confirmed by Mr. Cuomo’s office and Clayton, forwards an investigation by the attorney general into the question of whether the investment banks held back information they should have provided in the disclosures that accompanied the huge packages of loans they offered as securities."
Guardian Unlimited: U.S. Money Markets Calm but... (January 20, 2008)
- "Short-term lending markets have shaken off much of the paralysis of last fall's credit crunch, thanks in part to extraordinary efforts by central banks to restore order ..."
Democracy Now: Report: Subprime Mortgage Crisis Causing African Americans to... (January 17, 2008)
- "A startling new report has predicted the subprime mortgage crisis will cause people of color to lose up to $213 billion..."
CNNMoney: Mortgage meltdown: Now the rents (January 16, 2008)
- "Home prices dropped last year in most cities around the nation, and now rents are flattening out in many of the markets worst hit by the housing downturn."
New York Times: Giant Write-Down Is Seen for Merrill (January 11, 2008)
- "Merrill Lynch is expected to suffer $15 billion in losses stemming from soured mortgage investments..."
CNN Money: Market Snapshot: U.S. Stocks Likely to Advance in First Week... (December 30, 2007)
- "U.S. stocks are likely to advance in the first week of 2008 as investors...get confirmation from the latest jobs report that the economy hasn't tipped into recession, said strategists."
StarTribune.com: Economists See Trouble Ahead, But No Recession (December 29, 2007)
- "Risky mortgages will rock the finances of lenders and homeowners...but they won't drag the U.S. economy into a recession."
Los Angeles Times: FDIC Chairwoman Is Right on the Money (December 23, 2007)
- "...Bair, who runs the Federal Deposit Insurance Corp., called for a sweeping effort to restructure shaky loans, including those held in securities owned by Wall Street players."
Los Angeles Times: Ghosts of 2007 Will Linger On (December 21, 2007)
- "...long after the calendar has turned, here are four memories of 2007 that will linger."
Reuters: Single-Family Housing Starts Hit 16-year Low (December 18, 2007)
- The subprime mortgage crisis has trickled down to the construction industry, as the development of new homes has reached a 16-year low.
Reuters: Sabic Says U.S. Mortgage Crisis Hit Chemical Demand (January 19, 2008)
Rueters: Manhattan Defies U.S. Housing Nightmare, Sets Record (January 3, 2008)
CNNMoney: Fed tightens up lending rules (December 18, 2007)
WSJ.com: In Capital, Steps Weighed to Fix Mortgage Mess (December 15, 2007)
Newsday.com: Trying to Cash in on the Mortgage Mess: Investing Or Gambling? (December 17, 2007)
FT.com: Vote in Congress Backs Law to Help Subprime Victims (December 15, 2007)
AFP: Banks Must Own Up to Subprime Losses to Keep Fear at Bay (December 16, 2007)
Reuters: Senate Votes to Expand Mortgage Program (December 14, 2007)
Reuters: Greenspan: Subprime Accident Waiting to Happen (December 12, 2007)
Reuters: U.s. Regulators Welcome Subprime Plan, Urge Caution (December 9, 2007)
Wall Street Journal: U.S. Mortgage Crisis Rivals S&L Meltdown (December 10, 2007)
Bloomberg: Stocks Rally When U.S. Economy Slow to LessThan 1% (December 10, 2007)
CNN Money: Ubs' Ospel Says to Remain Chairman, No Further Job Cuts Planned (December 10, 2007)
Market Watch: Ubs to Take Further $10 Billion Subprime Write-Down (December 10, 2007)
Guardian Unlimited: White House to Reveal Sub-Prime Rescue... (December 6, 2007)
Bloomberg.com: Paulson Says Subprime Loan Plan to Ease Economy Risks (December 4, 2007)
CNNMoney: Roadblock to a subprime solution (December 4, 2007)
AZcentral.com: Subprime debacle traps even credit-worthy (December 4, 2007)

Subprime Mortgage Crisis Information

Santa Cruz Sentinel: Why America's Subprime Mess Reaches Around the World (April 13, 2008)
Investopedia: What is a subprime mortgage?
Wikipedia: Subprime lending
MtgProfessor.com: What Is a Sub-Prime Mortgage Lender?
BBC NEWS: Timeline: Sub-prime problems (August 31, 2007)

Subprime Mortgage Crisis Background

CNNMoney: Mortgage Meltdown 2007 Archived Articles
CNNMoney.com: Housing starts, building permits both at 10-year low (August 20, 2007)
Yahoo! Finance: Fed Approves Cut in Discount Loan Rate (August 17, 2007)
Washington Post: Banks Add More Funds To Stabilize Markets (August 11, 2007)
BBC NEWS: World shares fall on credit fears (August 10, 2007)
FT.com: Subprime crisis could spread to EU, Slovenian bank chief warns (August 7, 2007)
New York Times: Top Lender Sees Mortgage Woes for ‘Good’ Risks (July 25, 2007)
CNN.com: Looking for ways out of the subprime mortgage crisis (March 30, 2007)
U.S. Senate Committee on Banking, Housing, and Urban Affairs (March 22, 2007)
New York Times: Re-Refinancing, and Putting Off Mortgage Pain (July 23, 2006)
MarketWatch: A house should not be your retirement piggy bank (July 19, 2006)
The Weekly Standard: Housing Bubble Trouble (April 10, 2006)

Subprime Mortgage Crisis Blogs and Commentary

The New York Times: The Unending Allure of the Free Lunch (February 10, 2008)
New York Times: Opinion: The Loan Crisis Wasn’t an Accident (December 23, 2007)
Guardian Unlimited: Beware Those Who Would Bail Us Out of This Chaos (December 16, 2007)
Newsday.com: Editorial: Bush's Subpar Subprime Rescue Plan (December 9, 2007)
Los Angeles Times: Symptoms of an Economic Depression (December 9, 2007)
Christian Science Monitor: Housing: A Crisis with Staying Power (December 11, 2007)
The Liberal Doomsayer: Sub-Prime Time
BlownMortgage.com: Ohhh..You Mean it's Not Just a Subprime Problem??
Beat The Press: Bailing Out the Mortgage Market
MF Blog: Subprime mortgage crisis - Alternative thoughts
Lansner on Real Estate: Commercial real estate ‘party is over’
Democracy Now!: Minorities Hit Hardest by Subprime Mortgage Crisis (November 29, 2007)
MarketWatch: As Financial Crisis and Panic Spread, Opportunity Begins to Knock (November 8, 2007)