US Sub Prime Mortgage Crisis

The widening US sub prime mortgage crisis has left many a people jobless in the region. In fact because of the real estate meltdown there has been credit seizing up impacts which have affected employees in various ways causing some to lose jobs and forcing others to change jobs.

Like for instance take the case of Stephen Markha who has faced the US sub prime mortgage crisis. This 28-year-old professional has just been recruited in the City, London's financial center. Apart from that he is leaving with a large exit package and is considerably well settled than his peers with no worries apart from the one that if he will have to sell or rent his loft in west Manhattan?

Tony Ventimiglio is another example of a professional impacted by US sub prime mortgage crisis. This 45-year-old car salesman after the housing boom changed his field to real estate four years ago. This was when subprime mortgage lending to homebuyers with poor credit, who otherwise would have better been charged with higher interest rates, was common. Nonetheless even now Ventimiglio was still well off.

However, recent research shows that borrowers facing US sub prime mortgage crisis have found themselves unable to make payments in a double-edged context of increasing interest rates. Further slumping house prices have also made them unable to pay credit. Thus the crisis in August triggered a credit crunch that roiled markets around the world.

Despite their differences, Markham and Ventimiglio are both victims of US sub prime mortgage crisis that has been created by the US financial sector. Ventimiglio was selling the dream of home ownership. What is interesting is that he was not worrying about whether his clients could repay their home loans On the other hand Markham was buying mortgages. He was then packaging them into products. Further and more significantly he was selling them to investors. These were the investors who were eager to boost their investment portfolios.

Now it seems from recent trends that the subprime mortgages activity is over. The demand created was fictitious which had false cash and volume. This was because there were many customers who had no knowledge about mortgages and so it was easy to cash in to the market. The sellers were required not to do much but simply to pass a test and get a license to sell property.

Prior to US sub prime mortgage crisis the agents basically could become licensed with just three hours of theory classes and a test. US sub prime mortgage crisis