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建立人际资源圈The subprime mortgage market---Essay代写范文
2016-07-22 来源: 51Due教员组 类别: Essay范文
51Due论文代写平台assignment代写范文:The subprime mortgage market 房产市场出现明显的泡沫现象，从房屋抵押贷款分析出市场的病态危机，要加强放贷条件，了解贷款人的经济背景，提高利率，减小房地产危机。政府要做相应的宏观调控，修改现有的贷款，加强辅导服务。
We all know that home foreclosures have been on the rise since last year. In nation, foreclosures have climbed to a staggering 225,329 year to date. The top five foreclosure states are California, Texas, Georgia and Ohio.
The cause of the hike in foreclosures took birth between the year 2000 and 2001 when lenders relaxed their qualification requirements for obtaining a mortgage and the advent of the subprime mortgage market.
Individuals who previously were not able to qualify for a home loan because of income and/or credit challenges, were able to obtain home loans via lender programs such as zero down payment programs, stated income programs, no doc loan programs, combo loan programs and the vicious adjustable rate mortgage.
What these programs had in common was that in the underwriting process they did not provide an accurate financial picture of the borrower, got them into loans that they could not afford, and then shortly thereafter, because they could not afford the loan to begin with, they found themselves in a financial hardship. They were falling behind on their mortgage payments and before we all knew it they were headed to foreclosure.
What is happening now is that lenders procedures are being scrutinized by their loan guarantors, purchasers and the secondary market. They're credit ratings are being lowered because of the number of foreclosures in their loan portfolio and it is has made it more difficult for them to obtain money to issue new mortgages.
Now in order for them to maintain favorable credit ratings enabling them to continue to finance new loans and keep their business flowing, they've had to tighten up on their lending practices in order to maintain their current rating or raise their rating from the level that it fell to.
Lenders are going back to the traditional way of borrowing. This will make it more difficult for homeowners to obtain a loan.
Supposedly, the US Government has also stepped in to tighten up the knot on lender borrowing practices. The US Government has implemented oversight practices to go in and investigate lender practices. States have begun to implement laws to guard against lender practices that put the homeowner in a detrimental financial situation in the future, North Carolina being one of them.
The number of foreclosures year to date for the loan guaranty program alone is astounding. This is only the tip of the iceberg considering that the foreclosure stats for other US Government market products such as FHA, Sub Prime and Conventional are ______.
We must give ourselves a pat on the back because it is only because of the very aggressive loss mitigation practices of our loan servicing divisions at all of our regional loan centers that we are able to mitigate loss through our foreclosure prevention program activities. We step in and we intervene and we work very proactively with the homeowner and the mortgage holder to institute plans that work for all and enable the homeowner to stay in their homes and avoid foreclosure.
Special report:
Eyes on the Fed
Full coverage
Fed cut could buoy housing markets
Half-way home: the big drop in Fed fund rate may offer a little help to a besieged housing market.
By Les Christie, CNNMoney.com staff writer
September 18 2007: 6:14 PM EDT
NEW YORK (CNNMoney.com) -- The Federal Reserve's aggressive half-point cut Tuesday could provide support for a slumping housing market.
A quarter-point drop had already been priced into the market for Treasury bills and other instruments tied to mortgage rates, according to Richard DeKaser, chief economist for National City Corp. The deeper cut means mortgage rates may have a little more room to fall, giving support to prices.
The Fed Funds rate affects a range of consumer loans, including home equity and mortgages. Lower mortgage rates would add to the number of home buyers able to afford to make purchases, increasing demand for properties and buoying home prices. Buyers generally care less about the actual purchase price than they do about the size of their payments. If rates drop, so will monthly debt obligations. (Latest home prices)
Interest rates for conforming loans - those of no more than $417,000 - are already reasonably low, averaging 6.31 percent for a 30-year fixed rate loan.
But an important class of loans that might benefit from the big cut: the high-ticket home mortgages known as non-conforming or jumbo loans. These loans have no guaranteed secondary market because they exceed the $417,000 cap and Freddie Mac and Fannie Mae will not buy them.
With investors wary about any loan perceived as carrying the least bit of risk, jumbo rates have risen in recent months. They carry rates about a full point higher than conforming loans. Jumbos are especially important in high-priced housing markets such as New York, California, Washington D.C. and Boston.
Jumbo rates may come down if the cut makes consumers more confident, according to Mark Zandi, chief economist for Moody's Economy.com.
s, according to Keith Gumbinger, vice president for HSH Associates, a mortgage industry publisher. It is that there is not enough money available for making loans.
'The liquidity problem hasn't changed,' Gumbinger said. 'The primary issue is trust between buyers and holders of debt.' Investors holding worthless or heavily discounted paper are not eager to buy more.
As a result, Gumbinger said problems in the housing market problems are too entrenched for a Fed rate drop to have an immediate impact.
Trust can take time to rebuild. Something that might speed the rebuilding process is better-than-expected earnings from the major Wall Street banks. Tuesday, Lehman Brothers' reported higher-than-forecasted profit, which allayed fears about the wallop that the mortgage crisis may inflict on Wall Street. Goldman Sachs, Morgan Stanley and Bear Stearns are due to report earnings later this week.
Home prices in many parts of the country remain out of reach for average Americans, leading to slow sales and lengthening inventories of houses on the market. Also adding to listings is a flood of new foreclosures hitting the market.
That inventory is weighing heavily on housing markets, according to Zandi, and much of it will have to sell through before prices start to rise again.
It didn't help market confidence that venerated ex-Fed head Alan Greenspan came out and opined on the possibility of double-digit housing price declines, according to Dean Baker, an economist and co-director of the Center for Economic and Policy.
'That has to be very worrisome for anyone lending into these markets,' said Baker
The U.S. housing market includes the construction, sale, and resale, of all residential properties across the country. Even though it's only focused on housing, conditions in the housing market are indicative of the state of the economy as a whole. Homes are durable goods, meaning that new home construction and sales are often highly correlated with economic cycles; people tend to buy new homes only when they are confident that they'll have enough income to pay for it, so economic downturns can depress the housing market considerably. In addition to the buildings themselves, homes require appliances, furniture, utility services, and any number of other secondary goods and services. When a new home is built and purchased, the financial impact of that sale continues on indefinitely, every time the owner buys a lightbulb or pays the electricity bill. As such, conditions in the housing market are monitored closely, given their widespread implications.
Currently, the housing market is somewhat shaky, due largely to the collapse of the subprime lending industry. The number of new homes sold in 2007 is projected to fall 19% from 2006 levels, according to the National Association of Realtors; existing home sales aren't faring well either, with a projected 6.8% drop over 2006 sales figures.[1]
Mortgage companies and other financial institutions
Deteriorating conditions in the housing market can substantially impact mortgage companies such as lenders. If demand for residential real estate falls, prices are likely to fall as well. As such, any homes that a lender repossesses to cover mortgage defaults is worth less, possibly even less than the company lent in the first place. Also, extremely poor conditions in the housing market might lead to a decrease in interest rates, which would make each new loan less profitable.
What causes housing booms and slumps?
The housing market is very closely related with prevailing economic conditions. There isn't a perfectly clear cause-and-effect relationship between the two; conditions in one can impact the other, and vice versa. In general, the housing market reflects the state of the economy as a whole. There are times when the economy seems to be humming right along, but the demand for residential real estate falls nonetheless. In cases such as these, the slump is often a sign of economic weakness that just hasn't manifested itself in other areas of the economy. While the relationship between the housing market and the entire economy is somewhat complicated, there are some observable factors that can impact the demand for residential real estate.
U.S. Economic Cycles
Business cycles have a number of significant repercussions for the economy. The most notable of these is the fact that household disposable income rises during booms and falls during recessions. The average American's purchasing power, therefore, rises and falls in tune with these economic cycles. When disposable incomes decrease, spending decreases overall, but some goods and services are more sensitive to these changes than others. Food and gasoline are two goods that are relatively less affected by these cycles; people still need to eat and get around, even during hard times. Durable goods, or larger purchases that are generally meant to last a while, are very hard hit by recessions, however. For example, if a person's income is halved, their food consumption will probably not change that much; they will be more likely, however, to put off buying a new washing machine, car, or house. Since these goods are 'durable', the ones they already have will probably last until their finances improve.
Because the demand for durable goods decreases during recessions, and a house is about as durable as a good gets, the residential real estate market is extremely sensitive to economic cycles. A recession can lead to lower demand for new home construction, appliances, furniture, and even cars.
Interest rates over time
Interest Rates
Interest rates are another factor that can dramatically impact the housing market and new home construction. When interest rates either rise or fall, the economy as a whole is affected. The housing market, however, is particularly sensitive to these changes for a number of reasons.
span style='font-size:14px;'>Cost of Borrowing
As interest rates increase, it becomes more expensive to obtain a mortgage on a home. Given mortgages' generally long terms (usually 15 or 30 years), even small changes in interest rates can significantly impact monthly payments and the total cost of buying a new home. Higher interest rates are likely to cause a decrease in demand for housing due to these rising costs. Conversely, lower interest rates can make borrowing money cheaper and stimulate demand in the housing market.
Subprime mortgages
Increasing interest rates can also harm preexisting mortgages and result in higher foreclosure rates, increasing the supply of homes on the market just as it becomes more expensive to buy them. The reason for this is the adjustable-rate mortgage, or ARM. ARMs are different from fixed-rate mortgages in that the interest rate is variable, changing with current interest rates throughout the term of the mortgage. These ARMs became very popular in the early- to mid-2000s, when low introductory, or 'teaser', rates caused many people to take out ARMs and buy houses. After the introductory period, however, the rates on these ARMs were reset to reflect current interest rates, resulting in much higher monthly payments. As a large percentage of these ARMs were made to subprime borrowers, many of whom could not afford the higher monthly payments, increasing numbers of homes began being repossessed. As many ARMs are still in their introductory periods, future waves of rate resets could further increase foreclosure rates. Interest rate increases could further exacerbate the problem, causing even more consumers to default on their mortgages. This increased number of foreclosures could lead to rising inventories of homes for sale, which would, in turn, depress real estate prices and decrease demand for construction.
Foreclosures to have 'profound' impact, report warns
WASHINGTON — Mounting home foreclosures will have 'profound' effects on the economy next year, reducing job growth, bleeding billions of dollars in tax revenues and hitting consumer spending — but shouldn't push the country into a recession, according to a report Tuesday.
Financial analysis firm Global Insight, in an study for the National Conference of Mayors, predicted at least 1.4 million homes will enter foreclosure next year. That will worsen the already sharp housing downturn, with ripple effects on hiring and spending.
Overall, businesses will create 524,000 fewer jobs next year. Tax receipts will fall by $6.6 billion in ten select states, the report predicts. Nearly 130 cities around the country will face sluggish growth, as economic activity expansion is reduced by more than a third in 65 metro areas alone.
The housing downturn will shave a full percentage point off growth, with the economy expanding at a tepid 1.9% annual rate, the report says. Property values will drop by $1.2 trillion, as foreclosures mount and the housing market remains in the doldrums. Home prices will fall by an average of 7%, but price declines could range as high as 16% in California, the report says
'Everyone has some culpability but we have to fix the problems,' says Mayor Douglas Palmer of Trenton, N.J., president of the U.S. Conference of Mayors. 'We can't afford not to do anything. We're losing tax revenues, have to maintain foreclosed property and we're going to see more and more homeless families.'
Federal, state and local lawmakers have struggled to respond to a growing wave of foreclosures among borrowers with higher-cost subprime mortgages. Nearly 17% of subprime adjustable rate mortgages are delinquent, a number that looks to rise as adjustable rate loans reset in coming months, often to sharply higher interest rates.
Federal Reserve Chairman Ben Bernanke in testimony to Congress earlier this month noted that, on average, nearly 450,000 subprime mortgages will reset every calendar quarter from now until the end of 2008.
'Avoiding the payment shock of an interest rate reset by refinancing the mortgage will be much more difficult,
as home prices have flattened out or declined, thereby reducing homeowners' equity, and lending terms have tightened,' Bernanke noted. He said rising foreclosures could reduce property values, weaken struggling housing markets and the economy.
The House has passed legislation to give federal housing agencies more freedom to lend to borrowers who would otherwise turn to the subprime market, while setting tighter standards for future mortgage lending. The Senate has yet to act on the bill. Federal and state banking regulators are trying to help loan servicing firms find ways to quickly restructure large groups of loans, instead of considering each mortgage on a case-by-case basis.
Palmer says the mayors are looking at ways to modify existing loans, strengthen counseling services and other steps in line with what Congress is debating. The mayors will also be meeting with lenders to assess the situation.
The Global Insight report says the housing market financial fallout will be widespread. New York City is forecast to lose more than $10 billion in 2008, followed by Los Angeles at $8.3 billion, Dallas at $4 billion; Washington at $4 billion, and Chicago at $3.9 billion.
In percentage terms, Myrtle Beach, S.C., could suffer the biggest hit, growing 1.7 percentage points less than it would have. California will suffer the most distress.
In other findings the report predicts that job growth will average 75,000 per month during the next six months. That's more than 100,000 fewer new jobs per month than the 2006 average. Consumer spending will expand by just 2% in 2008, buffered by falling home prices. And new home construction will fall through the spring of 2008, declining about 20% from current levels.
51Due原创版权郑重声明：原创范文源自编辑创作，未经官方许可，网站谢绝转载。对于侵权行为，未经同意的情况下，51Due有权追究法律责任。
51due为留学生提供最好的作业代写服务，想获取更多assignment代写范文，亲们可以进入主页 www.51due.com 为留学生提供assignment代写服务，了解详情可以咨询我们的客服QQ:800020041哟。-lc
We all know that home foreclosures have been on the rise since last year. In nation, foreclosures have climbed to a staggering 225,329 year to date. The top five foreclosure states are California, Texas, Georgia and Ohio.
The cause of the hike in foreclosures took birth between the year 2000 and 2001 when lenders relaxed their qualification requirements for obtaining a mortgage and the advent of the subprime mortgage market.
Individuals who previously were not able to qualify for a home loan because of income and/or credit challenges, were able to obtain home loans via lender programs such as zero down payment programs, stated income programs, no doc loan programs, combo loan programs and the vicious adjustable rate mortgage.
What these programs had in common was that in the underwriting process they did not provide an accurate financial picture of the borrower, got them into loans that they could not afford, and then shortly thereafter, because they could not afford the loan to begin with, they found themselves in a financial hardship. They were falling behind on their mortgage payments and before we all knew it they were headed to foreclosure.
What is happening now is that lenders procedures are being scrutinized by their loan guarantors, purchasers and the secondary market. They're credit ratings are being lowered because of the number of foreclosures in their loan portfolio and it is has made it more difficult for them to obtain money to issue new mortgages.
Now in order for them to maintain favorable credit ratings enabling them to continue to finance new loans and keep their business flowing, they've had to tighten up on their lending practices in order to maintain their current rating or raise their rating from the level that it fell to.
Lenders are going back to the traditional way of borrowing. This will make it more difficult for homeowners to obtain a loan.
Supposedly, the US Government has also stepped in to tighten up the knot on lender borrowing practices. The US Government has implemented oversight practices to go in and investigate lender practices. States have begun to implement laws to guard against lender practices that put the homeowner in a detrimental financial situation in the future, North Carolina being one of them.
The number of foreclosures year to date for the loan guaranty program alone is astounding. This is only the tip of the iceberg considering that the foreclosure stats for other US Government market products such as FHA, Sub Prime and Conventional are ______.
We must give ourselves a pat on the back because it is only because of the very aggressive loss mitigation practices of our loan servicing divisions at all of our regional loan centers that we are able to mitigate loss through our foreclosure prevention program activities. We step in and we intervene and we work very proactively with the homeowner and the mortgage holder to institute plans that work for all and enable the homeowner to stay in their homes and avoid foreclosure.
Special report:
Eyes on the Fed
Full coverage
Fed cut could buoy housing markets
Half-way home: the big drop in Fed fund rate may offer a little help to a besieged housing market.
By Les Christie, CNNMoney.com staff writer
September 18 2007: 6:14 PM EDT
NEW YORK (CNNMoney.com) -- The Federal Reserve's aggressive half-point cut Tuesday could provide support for a slumping housing market.
A quarter-point drop had already been priced into the market for Treasury bills and other instruments tied to mortgage rates, according to Richard DeKaser, chief economist for National City Corp. The deeper cut means mortgage rates may have a little more room to fall, giving support to prices.
The Fed Funds rate affects a range of consumer loans, including home equity and mortgages. Lower mortgage rates would add to the number of home buyers able to afford to make purchases, increasing demand for properties and buoying home prices. Buyers generally care less about the actual purchase price than they do about the size of their payments. If rates drop, so will monthly debt obligations. (Latest home prices)
Interest rates for conforming loans - those of no more than $417,000 - are already reasonably low, averaging 6.31 percent for a 30-year fixed rate loan.
But an important class of loans that might benefit from the big cut: the high-ticket home mortgages known as non-conforming or jumbo loans. These loans have no guaranteed secondary market because they exceed the $417,000 cap and Freddie Mac and Fannie Mae will not buy them.
With investors wary about any loan perceived as carrying the least bit of risk, jumbo rates have risen in recent months. They carry rates about a full point higher than conforming loans. Jumbos are especially important in high-priced housing markets such as New York, California, Washington D.C. and Boston.
Jumbo rates may come down if the cut makes consumers more confident, according to Mark Zandi, chief economist for Moody's Economy.com.
s, according to Keith Gumbinger, vice president for HSH Associates, a mortgage industry publisher. It is that there is not enough money available for making loans.
'The liquidity problem hasn't changed,' Gumbinger said. 'The primary issue is trust between buyers and holders of debt.' Investors holding worthless or heavily discounted paper are not eager to buy more.
As a result, Gumbinger said problems in the housing market problems are too entrenched for a Fed rate drop to have an immediate impact.
Trust can take time to rebuild. Something that might speed the rebuilding process is better-than-expected earnings from the major Wall Street banks. Tuesday, Lehman Brothers' reported higher-than-forecasted profit, which allayed fears about the wallop that the mortgage crisis may inflict on Wall Street. Goldman Sachs, Morgan Stanley and Bear Stearns are due to report earnings later this week.
Home prices in many parts of the country remain out of reach for average Americans, leading to slow sales and lengthening inventories of houses on the market. Also adding to listings is a flood of new foreclosures hitting the market.
That inventory is weighing heavily on housing markets, according to Zandi, and much of it will have to sell through before prices start to rise again.
It didn't help market confidence that venerated ex-Fed head Alan Greenspan came out and opined on the possibility of double-digit housing price declines, according to Dean Baker, an economist and co-director of the Center for Economic and Policy.
'That has to be very worrisome for anyone lending into these markets,' said Baker
The U.S. housing market includes the construction, sale, and resale, of all residential properties across the country. Even though it's only focused on housing, conditions in the housing market are indicative of the state of the economy as a whole. Homes are durable goods, meaning that new home construction and sales are often highly correlated with economic cycles; people tend to buy new homes only when they are confident that they'll have enough income to pay for it, so economic downturns can depress the housing market considerably. In addition to the buildings themselves, homes require appliances, furniture, utility services, and any number of other secondary goods and services. When a new home is built and purchased, the financial impact of that sale continues on indefinitely, every time the owner buys a lightbulb or pays the electricity bill. As such, conditions in the housing market are monitored closely, given their widespread implications.
Currently, the housing market is somewhat shaky, due largely to the collapse of the subprime lending industry. The number of new homes sold in 2007 is projected to fall 19% from 2006 levels, according to the National Association of Realtors; existing home sales aren't faring well either, with a projected 6.8% drop over 2006 sales figures.[1]
Mortgage companies and other financial institutions
Deteriorating conditions in the housing market can substantially impact mortgage companies such as lenders. If demand for residential real estate falls, prices are likely to fall as well. As such, any homes that a lender repossesses to cover mortgage defaults is worth less, possibly even less than the company lent in the first place. Also, extremely poor conditions in the housing market might lead to a decrease in interest rates, which would make each new loan less profitable.
What causes housing booms and slumps?
The housing market is very closely related with prevailing economic conditions. There isn't a perfectly clear cause-and-effect relationship between the two; conditions in one can impact the other, and vice versa. In general, the housing market reflects the state of the economy as a whole. There are times when the economy seems to be humming right along, but the demand for residential real estate falls nonetheless. In cases such as these, the slump is often a sign of economic weakness that just hasn't manifested itself in other areas of the economy. While the relationship between the housing market and the entire economy is somewhat complicated, there are some observable factors that can impact the demand for residential real estate.
U.S. Economic Cycles
Business cycles have a number of significant repercussions for the economy. The most notable of these is the fact that household disposable income rises during booms and falls during recessions. The average American's purchasing power, therefore, rises and falls in tune with these economic cycles. When disposable incomes decrease, spending decreases overall, but some goods and services are more sensitive to these changes than others. Food and gasoline are two goods that are relatively less affected by these cycles; people still need to eat and get around, even during hard times. Durable goods, or larger purchases that are generally meant to last a while, are very hard hit by recessions, however. For example, if a person's income is halved, their food consumption will probably not change that much; they will be more likely, however, to put off buying a new washing machine, car, or house. Since these goods are 'durable', the ones they already have will probably last until their finances improve.
Because the demand for durable goods decreases during recessions, and a house is about as durable as a good gets, the residential real estate market is extremely sensitive to economic cycles. A recession can lead to lower demand for new home construction, appliances, furniture, and even cars.
Interest rates over time
Interest Rates
Interest rates are another factor that can dramatically impact the housing market and new home construction. When interest rates either rise or fall, the economy as a whole is affected. The housing market, however, is particularly sensitive to these changes for a number of reasons.
span style='font-size:14px;'>Cost of Borrowing
As interest rates increase, it becomes more expensive to obtain a mortgage on a home. Given mortgages' generally long terms (usually 15 or 30 years), even small changes in interest rates can significantly impact monthly payments and the total cost of buying a new home. Higher interest rates are likely to cause a decrease in demand for housing due to these rising costs. Conversely, lower interest rates can make borrowing money cheaper and stimulate demand in the housing market.
Subprime mortgages
Increasing interest rates can also harm preexisting mortgages and result in higher foreclosure rates, increasing the supply of homes on the market just as it becomes more expensive to buy them. The reason for this is the adjustable-rate mortgage, or ARM. ARMs are different from fixed-rate mortgages in that the interest rate is variable, changing with current interest rates throughout the term of the mortgage. These ARMs became very popular in the early- to mid-2000s, when low introductory, or 'teaser', rates caused many people to take out ARMs and buy houses. After the introductory period, however, the rates on these ARMs were reset to reflect current interest rates, resulting in much higher monthly payments. As a large percentage of these ARMs were made to subprime borrowers, many of whom could not afford the higher monthly payments, increasing numbers of homes began being repossessed. As many ARMs are still in their introductory periods, future waves of rate resets could further increase foreclosure rates. Interest rate increases could further exacerbate the problem, causing even more consumers to default on their mortgages. This increased number of foreclosures could lead to rising inventories of homes for sale, which would, in turn, depress real estate prices and decrease demand for construction.
Foreclosures to have 'profound' impact, report warns
WASHINGTON — Mounting home foreclosures will have 'profound' effects on the economy next year, reducing job growth, bleeding billions of dollars in tax revenues and hitting consumer spending — but shouldn't push the country into a recession, according to a report Tuesday.
Financial analysis firm Global Insight, in an study for the National Conference of Mayors, predicted at least 1.4 million homes will enter foreclosure next year. That will worsen the already sharp housing downturn, with ripple effects on hiring and spending.
Overall, businesses will create 524,000 fewer jobs next year. Tax receipts will fall by $6.6 billion in ten select states, the report predicts. Nearly 130 cities around the country will face sluggish growth, as economic activity expansion is reduced by more than a third in 65 metro areas alone.
The housing downturn will shave a full percentage point off growth, with the economy expanding at a tepid 1.9% annual rate, the report says. Property values will drop by $1.2 trillion, as foreclosures mount and the housing market remains in the doldrums. Home prices will fall by an average of 7%, but price declines could range as high as 16% in California, the report says
'Everyone has some culpability but we have to fix the problems,' says Mayor Douglas Palmer of Trenton, N.J., president of the U.S. Conference of Mayors. 'We can't afford not to do anything. We're losing tax revenues, have to maintain foreclosed property and we're going to see more and more homeless families.'
Federal, state and local lawmakers have struggled to respond to a growing wave of foreclosures among borrowers with higher-cost subprime mortgages. Nearly 17% of subprime adjustable rate mortgages are delinquent, a number that looks to rise as adjustable rate loans reset in coming months, often to sharply higher interest rates.
Federal Reserve Chairman Ben Bernanke in testimony to Congress earlier this month noted that, on average, nearly 450,000 subprime mortgages will reset every calendar quarter from now until the end of 2008.
'Avoiding the payment shock of an interest rate reset by refinancing the mortgage will be much more difficult,
as home prices have flattened out or declined, thereby reducing homeowners' equity, and lending terms have tightened,' Bernanke noted. He said rising foreclosures could reduce property values, weaken struggling housing markets and the economy.
The House has passed legislation to give federal housing agencies more freedom to lend to borrowers who would otherwise turn to the subprime market, while setting tighter standards for future mortgage lending. The Senate has yet to act on the bill. Federal and state banking regulators are trying to help loan servicing firms find ways to quickly restructure large groups of loans, instead of considering each mortgage on a case-by-case basis.
Palmer says the mayors are looking at ways to modify existing loans, strengthen counseling services and other steps in line with what Congress is debating. The mayors will also be meeting with lenders to assess the situation.
The Global Insight report says the housing market financial fallout will be widespread. New York City is forecast to lose more than $10 billion in 2008, followed by Los Angeles at $8.3 billion, Dallas at $4 billion; Washington at $4 billion, and Chicago at $3.9 billion.
In percentage terms, Myrtle Beach, S.C., could suffer the biggest hit, growing 1.7 percentage points less than it would have. California will suffer the most distress.
In other findings the report predicts that job growth will average 75,000 per month during the next six months. That's more than 100,000 fewer new jobs per month than the 2006 average. Consumer spending will expand by just 2% in 2008, buffered by falling home prices. And new home construction will fall through the spring of 2008, declining about 20% from current levels.
51Due原创版权郑重声明：原创范文源自编辑创作，未经官方许可，网站谢绝转载。对于侵权行为，未经同意的情况下，51Due有权追究法律责任。
51due为留学生提供最好的作业代写服务，想获取更多assignment代写范文，亲们可以进入主页 www.51due.com 为留学生提供assignment代写服务，了解详情可以咨询我们的客服QQ:800020041哟。-lc
