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Mortgage in sentence

506 examples of Mortgage in a sentence

Moral Dilemmas for Fannie and FreddieNEW HAVEN – The United States government’s takeover of mortgage giants Fannie Mae and Freddie Mac constitutes a huge bailout of these institutions’ creditors, whose losses have ballooned as house prices continue to plummet.
The housing bubble was bursting by last fall, and banks with large mortgage holdings started reporting huge losses, sometimes big enough to destroy the bank itself, as in the case of Bear Stearns.
The fall in house prices also led to a sharp rise in mortgage defaults and foreclosures, which has increased the supply of homes on the market and caused house prices to fall further.
As a result, one-third of all American homeowners with mortgages are already “underwater” – their mortgage debt exceeds the value of the house.
More specifically, the rising unemployment rate, along with the large number of employees on involuntary part-time work, has increased the number of people who cannot afford their monthly mortgage payments.
If a homeowner stops making mortgage payments, the creditor can take the property but cannot take other assets or a fraction of wages.
Mortgage interest rates fell below 5% in March and April, but have risen significantly since then.
The Obama administration has enacted legislation aimed at helping individuals who are having difficulty making their monthly mortgage payments because of a decline in their incomes or a rise in the interest rate on their mortgage.
For individuals with high monthly mortgage payments relative to their disposable income, the US government will share with the creditor bank the cost of reducing the monthly payment to 31% of disposable income.
Some limited previous experience with mortgage modifications is not encouraging.
If that happens, a homeowner with a mortgage would see the real value of his debt rise by 10%.
Since price declines would bring with them wage declines, the ratio of monthly mortgage payments to wage income would rise.
In addition to this increase in the real cost of debt service, deflation would mean higher loan-to-value ratios for homeowners, leading to increased mortgage defaults, especially in the US.
For example, when the government borrows to buy land, it is treated as debt, but the offsetting transaction when it sells the land through a mortgage effectively goes unrecognized.
Though median households are generally benefiting from lower borrowing costs, wealthier households are benefiting much more, thanks in part to savings on mortgage loans, which are highest relative to income for the upper middle class.
Indeed, in some areas, prices are again under downward pressure, which could worsen if mortgage finance becomes less readily available and more expensive, as is possible.
These items range from small ones, like the $7,500 tax credit that goes to a buyer of an electric car, to large (for example, the deduction for mortgage interest and the exclusion from taxable income of employer payments for employee health insurance).
The mortgage deduction alone will reduce tax revenue in 2016 by $84 billion, or more than 5% of the personal income tax collected.
The mortgage crisis and the credit crunch have led to bailouts for the banks and the nationalization of housing finance and insurance.
But it is all too easy to forget that the development of this market was initially welcomed, because it enabled even people who would not normally qualify for a mortgage loan to aspire to homeownership.
But mortgage markets remain underdeveloped in most emerging economies.
One sure way to reduce the savings rate in China would be to develop an American-style mortgage market there.
They might be proud homeowners on paper, but their mortgage was probably underwritten by quasi-governmental institutions like Fannie Mae and Freddie Mac, which in turn rely heavily on capital from China for their own refinancing.
A year ago, however, with the subprime mortgage meltdown of August 2007, I became certain.
And if housing and mortgage security prices don’t just fall but collapse, everyone should remember that construction employment falls faster than employment in tradable goods can grow.
LONDON – Next month will mark the tenth anniversary of the global financial crisis, which began on August 9, 2007, when Banque Nationale de Paris announced that the value of several of its funds, containing what were supposedly the safest possible US mortgage bonds, had evaporated.
And essentially the same happened with US subprime mortgage lending and with the Spanish banking system in the 2000’s.
A true loss would be inflicted on a bank’s creditors only if the write-off losses on toxic mortgage loans exceeded the bank’s equity.
Banks’ profits rise too, because there is plenty of demand for mortgage lending, which is viewed as almost risk-free.
This leaves only the financial regulator or the central bank, which can use macroprudential tools – such as loan-to-value and debt-to-income ratios on new mortgage lending – to limit the deterioration of banks’ balance sheets during boom times.
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