Mar
24
2009
Math of Subprime Mortgage Default
Posted by: in Home Mortgage Online, tags: Banking System, Collapse, Credit Markets, Critical Problems, Decline, Delinquent Mortgages, Excerpt, Face Value, Markets World, Math Random, Mortgage Default, One Million, Sub Prime Mortgages, Subprime MortgageRandom Feed wrote an interesting post today on
Here’s a quick excerpt
This article tentatively accepts the proposition that the default of sub prime mortgages and the subsequent decline of housing prices have been the cause of critical problems in the banking system and collapse of credit markets world wide. Letís do some housing math. Last fall there were about one million delinquent mortgages. Let us presume the current figure is now fifty percent worse ñ i.e. one point five million homes. Assume that the average delinquent loan has a face value of about $
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