The subprime mortgage crisis is a subprime mortgage loan, which is aimed at individuals with poor credit status, no proof of income and repayment ability, and other heavy debts.

Subprime crisis can also be translated into subprime crisis. It refers to a storm caused by the bankruptcy of subprime mortgage institutions, the forced closure of investment funds and the violent shock of the stock market in the United States. It triggered an imminent liquidity crisis in major global financial markets. The "subprime mortgage crisis" in the United States began to appear gradually in the spring of 2006. In August 2007, it swept the major financial markets in the world, such as the United States, the European Union and Japan.

The direct cause of the subprime mortgage crisis in the United States is the rising interest rate in the United States and the continuous cooling of the housing market. Subprime mortgage refers to loans provided by some lending institutions to borrowers with poor credit and low income. The rise in interest rates has led to an increase in repayment pressure. Many users with bad credit feel that repayment pressure is high and there is the possibility of default, which has an impact on the recovery of bank loans.

Since the subprime mortgage crisis broke out in an all-round way, it has caused great impact and damage to the international financial order, produced a strong credit crunch effect in the financial market, and exposed the systematic financial risks accumulated in the international financial system for a long time. The financial crisis triggered by the subprime mortgage crisis is the most serious financial crisis in the United States since the Great Depression in the 1930s. The subprime mortgage crisis, which originated in the United States, is spreading around the world, and the global financial system has been greatly impacted, and the crisis has hit the real economy hard. China has also been affected by the subprime mortgage crisis.

Excessive innovation of financial instruments, distorted interests of credit rating agencies and relaxed supervision of monetary policy are the main reasons leading to the subprime mortgage crisis in the United States. The measures taken by the American government, such as massive capital injection, continuous interest rate cuts and direct intervention, have achieved some results, but they have not fundamentally solved the problem. The enlightenment from this is that financial regulation and control policies must conform to the economic situation and the law of periodic fluctuations; On the basis of strengthening financial supervision and perfecting risk prevention mechanism, promote the innovation of financial products and their systems; We should seize the favorable opportunity to encourage overseas asset mergers and acquisitions, optimize the structure of overseas assets, and spread the risks of overseas assets.

What does subprime mortgage mean? I'll show you in a minute.

When applying for a loan, banks generally provide borrowers with a variety of loan methods to choose from. Every borrower can choose different loan products according to his own needs, and some borrowers will choose subprime mortgage. What does subprime mortgage mean? Take everyone to understand in one minute!

What does subprime mortgage mean?

Subprime mortgage refers to loans provided by some lending institutions to borrowers with poor credit and low income.

The loan standard of subprime loans is low, the ratio of total loans to real estate prices can reach 85%, or even zero down payment, and the ratio of repayment amount to income can exceed 55%.

The credit degree of the loan target is relatively low, and the main target of subprime loans is low-income families without good credit records. The floating interest rate and the repayment method of first low and then high are implemented, and the floating interest rate accounts for more than 85% of the whole subprime loan.

The main business entity is the mortgage loan company. The main way is that mortgage loan companies attract borrowers first, then package all the loans of lenders, and then sell the loans to institutional investors (pension funds and hedge funds) by evaluating the price appreciation, thus transferring financial and lending risks.

In addition to subprime loans, there are mortgage loans.

Mortgage loan refers to the loan that the borrower obtains from the bank with certain collateral as guarantee. This is a way of bank loans. Generally speaking, collateral includes securities, China bonds, various stocks, real estate and bills of lading.

Or other documents proving the ownership of the goods.

The above is the sharing of "what is the meaning of subprime mortgage?" I hope it will help everyone!

What caused the subprime mortgage crisis? Why does it cause the stock market?

The subprime mortgage crisis is mainly caused by crazy encouragement of consumption in order to promote social and economic growth, and social distribution is in a serious imbalance. The income of the middle class and high-income people has fallen instead of rising, while the financial industry generally lacks management. At this time, the market is still constantly inducing loans to exceed consumption, crazily encouraging ordinary investors to invest in the stock market for a long time, which will flood a large number of idle funds into the stock market, but high asset and leveraged interest rates have played a private role.

The subprime mortgage crisis is caused by the collapse of financial credit, with serious consequences.

The term subprime mortgage crisis originated from the American financial crisis in 2008. The subprime mortgage crisis occurred in the United States because more and more people in the market applied for credit loans when buying a house and obtained funds through credit. With the emergence of the real estate market bubble, the bubble burst in a short time, leading to a decline in the housing market and a sharp rise in short-term interest rates. At this time, the repayment rate will also increase.

But at this time, the market is still frantically guiding people to borrow credit for consumption, and a large amount of funds are pouring into the market at the same time. These funds, like runaway wild horses, entered the market without supervision, causing the collapse of financial credit and inducing the subprime mortgage crisis.

The subprime mortgage crisis broke out and financial funds lacked supervision.

The main reason for the subprime mortgage crisis is that in order to promote economic growth in the market, some institutions began to frantically encourage residents to spend in advance. Under the instigation of banks, they were willing to lend money to ordinary people in the form of credit. However, for the middle and high income class, through leverage, their income does not rise but falls.

In the financial industry, there is also a lack of serious supervision, which makes many ordinary investors blindly speculate in the market under the instigation of the market. Over time, it has destroyed the international financial order and caused great impact and destruction. The financial market is in a hurry, and the tightening effect has already started.

The subprime mortgage crisis triggered the stock market and the capital chain broke.

One of the most important factors affecting the stock market is the subprime mortgage crisis. After the subprime mortgage was given to those people with poor credit and no repayment ability, all investors on the lending line suffered at the same time because their credit was greatly discounted and they could not repay normally. In other words, the capital chain is broken due to the collapse of credit, there are fewer and fewer high-quality bank loan resources, and the interest rate of four loans is constantly increasing, which makes many investment funds forced to close, the stock market is directly triggered, and the economic storm follows.

Rising interest rates have led to huge repayment pressure, and real estate has been cooling down.

The biggest problem brought by the subprime mortgage crisis is the rising interest rate, which makes many borrowers have great repayment pressure. Some users with excellent credit believe that the repayment pressure is huge, so there is a risk of default. In the subprime mortgage market, fixed interest rate and floating interest rate are combined to lend money, and the floating interest rate for later repayment is really adjusted up and down. With the continuous downturn of the real estate market, the development of the subprime mortgage market is declining day by day, and the financial crisis after the stock market has come.

In short, the subprime mortgage crisis is a series of credit loans blindly used for consumption. Sub-prime mortgage institutions give these funds to some users with bad credit through credit loans with huge interest, which makes their repayment delayed indefinitely or even unable to repay in the end. Based on this situation, there is a large amount of capital outflow in the stock market, and then there is a bubble in the high leverage model. The bubble is disillusioned and the stock market is comprehensive.

What is subprime mortgage?

Question 1: What is subprime mortgage?

Question 2: What does subprime mortgage mean?

Subprime mortgage refers to a kind of loan provided by banks or lending institutions to customers with low credit rating or income below the general credit standard. This kind of loan usually does not require a down payment, but the interest will continue to increase.

The "sub-optimal" and "excellent" mortgage market in the United States is divided by the borrower's credit status. According to the level of credit, lenders treat borrowers differently, thus forming a two-tier market. People with low credit can't apply for preferential loans and can only seek loans in the secondary market. The secondary market serves loan buyers, but the loan interest rate in the secondary market is usually 2% ~ 3% higher than the preferential mortgage.

Subprime mortgage loan has a good market prospect. Because it provides mortgage services to borrowers who are discriminated against or do not meet the mortgage market standards, it is very popular in areas where ethnic minorities are highly concentrated and the economy is underdeveloped.

Subprime loan is a high-return business for lenders. However, because the credit requirements of subprime loans are lower than those of primary loans, borrowers' credit records are poor, and the risks faced by subprime mortgage institutions are naturally greater. According to the research data of UBS, by the end of 2006, the default rate of repayment in the subprime mortgage market in the United States was as high as 10.5%, which was seven times that in the prime loan market.

For the borrower personally, default will increase the difficulty of refinancing, lose the right to redeem the mortgage, and cannot enjoy the benefits brought by rising house prices. Moreover, any borrower's breach of contract will also have a negative impact on the borrower's living area. A survey in Chicago shows that if a block defaults and forecloses, the average value of single-family houses in the block will drop by 65,438+00%, and if a region defaults intensively, the credit of the region will be seriously reduced.

What is the exact definition of subprime loans?

Subprime mortgage refers to loans provided by some lending institutions to borrowers with poor credit and low income.

After 200 1 economic recession, the American housing market flourished at ultra-low interest rates, which played an important role in economic recovery and subsequent sustained growth, and the subprime mortgage market developed rapidly.

However, with the sharp cooling of the American housing market and the rise of interest rates, many borrowers in the subprime mortgage market are unable to repay their loans on time, resulting in serious losses and even bankruptcy of some lending institutions. In 2008, the subprime mortgage crisis in the United States caused investors to worry about the health of the entire financial market and the economic growth prospects of the United States, which led to violent shocks in the stock market in the following years.

Subprimemortgageloan ("subprime mortgage loan").

The "secondary" and "priority" of American mortgage market are determined by the credit status of borrowers. According to the level of credit, lenders treat borrowers differently, thus forming a two-tier market. People with low credit can't apply for preferential loans and can only seek loans in the secondary market.

The secondary market serves the loan buyers, but the loan interest rate in the secondary market is usually 2% ~ 3% higher than that in preferential mortgage interest rates.

So much for the introduction of subprime mortgage institutions.