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2008 Mortgage Crisis Research Paper

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Mortgage supply and demand The American dream is the goal for most people born is America, however is it something that can be obtained or accomplished or is it a fantasy. At a very young age children are told to go to school work hard and make excellent grades. Eventually the student will finish school and become an adult searching for the big house with a white pickle fence on a hill. The mortgage industry has been a very important part of the United States of America economy for countless decades. Throughout history there have been swings in the mortgage industry that effected many Americans and economists have very many different approaches to correct issues in the mortgage industry across the United States of America. There have been …show more content…

Is it possible for America’s economic growth to keep up with the increased unemployment rate among Americans, especially for the mortgage industry in America? The unemployment rate in the mortgage industry increased as companies closed their doors, there are several different factors that contribute to this issue such as adjustable rate mortgages and subprime loans. The human cost of the unemployment rate is very damaging in these sectors across America, countless people were forced into foreclosure. The United States of America had to create new standards and mortgage regulations to stabilize the …show more content…

Countless lender was unable to survive. This caused a downturn in the mortgage industry many people were unable to obtain mortgage loans, however the demand for mortgage loans were great and many applicants were unable to qualify for a loan. Once lenders started collapsing property value also started to decline as well. The lenders across the country set stricter guidelines to reduce the risk of bad paper loans. Conventional loans requirement was a lot stricter now then in the past, conventional loans required lower debt to income ratio, higher credit score, and full documentation. Eventually many loan originators started to sell or offer FHA loans to applicants because the requirements to qualify were less strict. Below are some of the guidelines for conventional

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