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Mortgage in sentence

506 examples of Mortgage in a sentence

But in countries where rental markets are small and function poorly – often a result of a widely held belief that all families should own their homes – financial stability and access to mortgage financing are closely linked.
By limiting the riskiest borrowers’ access to finance, rules on mortgage lending can trigger a fierce political backlash.
Greater financial regulation in the US means consumers will not be able to borrow so easily to rack up huge mortgage and credit card debt.
At that time, the consensus among economists and policymakers was that these estimates were exaggerated, because it was believed that sub-prime mortgage losses totaled only about $200 billion.
Arguably, the 2008 financial crisis was different, because, as the theorist Geoffrey West writes, it was “stimulated by misconceived dynamics in the parochial and relatively localized US mortgage industry,” and thus exposed “the challenges of understanding complex adaptive systems.”
Nothing else ultimately explains lenders’ immense willingness, in the boom up to 2006, to lower their credit standards on home mortgages, regulators’ willingness to let them do it, rating agencies’ willingness to rate mortgage securities highly, and investors’ willingness to gobble them up.
Consumer credit began in China only in the late 1990’s, with regulations allowing banks to offer mortgage loans, which now amount to about 10% of total loans.
According to a recent survey by the People’s Bank (the central bank), households in the ten largest cities spend about 35% of their monthly income on average on mortgage repayments, which is comparable to other countries.
There is also a dark cloud over the mortgage market following a judgment by the Supreme People’s Court in 2003 that banned the repossession of homes that are a primary residence.
As Bernanke pointed out, 45% of US farms were behind on mortgage payments in 1933, and in 1934, default rates on home mortgages exceeded 38% in half of US cities.
That will require establishing effective regulatory structures that facilitate long-term borrowing and repayment, while ensuring that lenders do not exploit borrowers, as has occurred everywhere from rural India to the United States mortgage market.
Having campaigned on a promise to restore and improve the French people’s purchasing power, Sarkozy came to power, in May 2007, just a few weeks before the sub-prime mortgage crisis erupted, and a few months before commodity prices exploded.
The plan’s central conceit is that government ingenuity can disentangle the trillion-dollar “sub-prime” mortgage loan market, even though Wall Street’s own rocket scientists have utterly failed to do so.
This brings us back to the US Treasury’s plan to spend hundreds of billions of dollars to unclog the sub-prime mortgage market.
Investment bankers have been losing their cushy jobs because they could not figure out any convincing way to price distressed mortgage debt.
But the main concern centers around the Treasury’s apparent intention to pay more than double the current market price (20-30 cents on the dollar) on the premise that Treasury’s success in untangling the mortgage market will make any discount seem like a bargain.
The government may also need to consider injecting funds more directly into the mortgage sector while the private sector reconstitutes itself.
Issued just as the first doubts about the subprime mortgage market in the United States were emerging, it presented a rosy view of the present and the future.
In the mortgage market, the IMF saw prospects of a soft landing.
How Inequality Fueled the CrisisCHICAGO – Before the recent financial crisis, politicians on both sides of the aisle in the United States egged on Fannie Mae and Freddie Mac, the giant government-backed mortgage agencies, to support low-income lending in their constituencies.
In order to target these subsidies to low-income households, governments typically treat families of different income levels differently: the rich must fend for themselves, middle-class families are provided with assistance to secure mortgage loans, and the poor are offered public housing.
More importantly, the lobbying of the quasi-governmental mortgage lenders Fannie Mae and Freddie Mac would not have been so successful without the idea of the “ownership society.”
After pointing to soaring credit growth in most South American countries (in Brazil, growth in mortgage lending exceeded 40% during 2010, more than tripling the stock of credit outstanding in 2007), the Fund concluded that “the current expansion does not yet rise to the level of a credit boom,” though “it would if the expansion were sustained for a prolonged period.”
During the pre-crisis boom, homebuyers were encouraged to borrow heavily to finance undiversified investments in a single home, while governments provided guarantees to mortgage investors.
In the US, this occurred through implicit guarantees of assets held by the Federal Housing Administration (FHA) and the mortgage agencies Fannie Mae and Freddie Mac.
He wants the FHA shut down and replaced with a subsidized saving program that does not attempt to compete with the private sector in evaluating mortgage risk.
But, while it was a highly leveraged mortgage market that fueled the financial crisis 11 years later, the idea, he said, has not made headway anywhere in the world.
In order to ensure that mortgage securitizers have some “skin in the game,” they are required to retain an interest in 5% of the mortgage securities that they create (unless they qualify for an exemption).
While American households have reduced their debt considerably (mainly through mortgage defaults), household debt in many other countries has continued to grow rapidly.
A second strategy for curbing the buildup of debt could be to introduce mortgage contracts that enable more risk sharing between borrowers and lenders, essentially acting as debt/equity hybrids.
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