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Mortgages in sentence

375 examples of Mortgages in a sentence

But in what has been a truly malignant “export” from America to Europe, the US created “garbage debt” in the form of sub-prime mortgages, and Europeans – hungry for extra yield, and as reckless as Americans – bought it.
This would lower the cost of labor, restoring competitiveness (as in Asia after 1997-98) while also inflating asset prices and thereby helping borrowers who are underwater on their mortgages and other debts.
This might seem like a strange idea in the immediate aftermath of a major debt-fueled financial crisis, and with many homeowners still underwater on their mortgages (they owe more than the house is worth, even if they can still afford the monthly payments).
The Treasury and Federal Reserve are adding preferred stock to the balance sheets of the US mortgage giants Fannie Mae and FHLBC and the insurance giant AIG in the hope of shoring up their capital cushions and lowering their borrowing costs so that they can buy more mortgages.
The Treasury has asked for authority to purchase $700 billion of mortgages to get them off of the private sector's books.
Afflicted by historically high unemployment, massive under-employment, and relatively stagnant real wages, while burdened with underwater mortgages, excessive debt, and subpar saving, US consumers are stretched as never before.
Many banks have already acknowledged their open-ended losses in residential mortgages.
Likewise, Casey Mulligan of the University of Chicago really does appear to believe that large falls in the employment-to-population ratio are best seen as “great vacations” – and as the side-effect of destructive government policies like those in place today, which lead workers to quit their jobs so they can get higher government subsidies to refinance their mortgages.
In addition, there is the $3.9 trillion in debt owed by America’s government-backed housing-finance agencies (Fannie Mae, Freddie Mac, and others), which currently underwrite more than 90% of all US mortgages.
It has been argued that if, in 2007, the US had a Financial Products Safety Commission akin to its Food and Drugs Administration, the market would not have been flooded with “teaser” mortgages that entangled millions of households in chains of predatory credit.
In Spain, banks have historically issued 30-year mortgages whose interest rates are indexed to interbank rates such as Euribor, with a small spread (often less than 100 basis points) fixed for the lifetime of the mortgage.
Fannie Mae, the government-created entity responsible for providing mortgages for middle-class Americans, helped lower mortgage costs and played a significant role in making America one of the countries with the largest proportion of private home ownership.
But I was shocked by how large a panic was produced by what seemed to me – and still does – relatively small losses (in terms of the size of the global economy) in subprime mortgages; by the weakness of risk controls at the major highly-leveraged banks; by how deep the decline in demand was; by how ineffective the market’s equilibrium-restoring forces have been at rebalancing labor-market supply and demand; and by how much core-country governments have been able to borrow to support demand without triggering any run-up in interest rates.
Though policies like limits on mortgages for first-time buyers and minimum residency requirements for purchasing property in a first-tier city like Beijing or Shanghai helped to ease demand, supply-side tactics, such as limiting credit to real-estate developers and imposing new taxes on property sales, have proved to be counter-productive.
As prices went up and recessionary pressures increased, many homeowners failed to pay their mortgages.
According to this group, misguided government policies, aimed at increasing homeownership among relatively poor people, pushed too many into taking out subprime mortgages that they could not afford.
But, while Fannie and Freddie jumped into dubious mortgages (particularly those known as Alt-A) and did some work with subprime lenders, this was relatively small stuff and late in the cycle (e.g., 2004-2005).
It avoids the hopeless task of trying to value millions of complex mortgages and the even more complex financial products in which they are embedded, and it deals with the “lemons” problem – the government gets stuck with the worst or most overpriced assets.
Wall Street has polluted the economy with toxic mortgages.
In an effort to increase its low popularity in Latin America, the Bush administration recently announced an additional $75 million for education, and $385 million to help finance mortgages for the poor.
Most people evicted from their homes have not been paying their mortgages, and, in most cases, those who are throwing them out have rightful claims.
With one out of four mortgages in the US under water – more owed than the house is worth – there is a growing consensus that the only way to deal with the mess is to write down the value of the principal (what is owed).
Lower interest rates worked, but not so much because they boosted investment, but because they led households to refinance their mortgages, and fueled a bubble in housing prices.
At that time, we and our colleague Robert Dugger argued that a much more effective and fair use of taxpayers’ money would be to reduce the value of mortgages held by ordinary Americans to reflect the decline in home prices and to inject capital into the financial institutions that would become undercapitalized.
A few months later, when President Barack Obama’s administration arrived, one of us (Soros) repeatedly appealed to Summers to adopt a policy of equity injection into fragile financial institutions and to write down mortgages to a realistic market value in order to help the economy recover.
As a result, Spanish banks typically make provision to cover 150% of bad debts whereas British banks cover only 80-100%, and Spanish homebuyers must pay between 20% and 30% deposit on a house, whereas 100% mortgages have routinely been given in the United States and the United Kingdom in recent years.
Back at the start of 2004, America’s banks discovered that they could borrow money cheaply from Asia and lend it out in higher-yielding domestic mortgages while using sophisticated financial engineering to wall off and strictly control their risks – or so they thought.
Part of the reason stems from tax systems, which in some countries allow some consumer interest payments (for example, mortgages in the US) to be deducted from taxable income.
These large financial firms were provided a scale of assistance that was not generally available to the nonfinancial corporate sector – and certainly not to families who found that the value of their assets (their homes) was below the value of their liabilities (their mortgages).
The recovery was ultimately fueled by so-called “subprime” mortgages: home-purchase loans extended to borrowers with lower credit ratings.
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