The housing recession the worst in US history and worsening every day will eventually see house prices fall by more than 20 , with millions of Americans losing their homes.

So far, the sub prime crisis has had a limited direct impact on Latin America s mortgage markets.

Mortgage brokers were happy to get in on the act.

The Right Weights for Mortgage Risks

Occupy the Mortgage Lenders

Losses are spreading from sub prime to near prime and prime mortgages, commercial mortgages, and unsecured consumer credit (credit cards, auto loans, student loans).

Indeed, the foreclosure rate is increasing.

Unlike virtually every other country, US residential mortgages are effectively no recourse loans.

But mortgage markets remain underdeveloped in most emerging economies.

What is needed is a quick write down of the value of the mortgages.

In the fourth act, the real estate bubble will burst.

Its members could not agree even on how to define subprime mortgages and calculate how many such mortgages there were in the United States at the time of the crisis.

Moreover, the US housing market appears to be stabilizing....Overall, the US mortgage market has remained resilient, although the sub prime segment has deteriorated a bit more rapidly than had been expected.

In the US, reviving the credit markets requires stopping the mortgage defaults driven by negative equity.

Mortgage debts, too, must be written down.

Thus, although delinquency rates have risen slightly in Mexico since the mortgage market was created in 2003, only about 5 of mortgages are between 31 and 60 days late. Only 2 are between 61 and 90 days late.

You shall stand outside, and the man to whom you do lend shall bring forth the pledge outside to you.

Thou shalt stand abroad, and the man to whom thou dost lend shall bring out the pledge abroad unto thee.

After the subprime crisis erupted, mortgage and consumer debt was paid down by households either with their savings or by default.

Mortgages became more widely available.

It was called securitized mortgages.

This creates a strong incentive to default, because mortgages in the US are effectively non recourse loans the creditor may take the property if the borrower doesn t pay, but cannot take other assets or a portion of wage income.

But, in America s home mortgage market, this is much less common.

Wall Street has polluted the economy with toxic mortgages.

Sub prime mortgages made the American dream come true.

In the old days, when borrowers found it impossible to make their payments, mortgages would be restructured foreclosures were bad for both the borrower and the lender.

Reducing the face value of mortgages and providing the upside in case home prices were to rise in the long run to the creditor banks is another way to convert mortgage debt partly into shareholder equity.

The problem was not just sub prime mortgages.

The claimant sought from the Court an order of foreclosure.

a rapid reduction of insolvent households debt burden, preceded by a temporary freeze on all foreclosures

Many banks have already acknowledged their open ended losses in residential mortgages.

In this way, the Fed contributed to creating the sub prime crisis.

In November 1699, William finally recommended that Parliament pay the mortgage debt to George, and in early 1700, the debt was honoured.

As a result, mortgage brokers maximize their income by generating larger volumes of mortgages, as do the banks that package these loans into mortgage backed securities (MBS s).

Second, job losses will lead to a more protracted and severe housing recession, as joblessness and falling income are key factors in determining delinquencies on mortgages and foreclosure.

As Bernanke pointed out, 45 of US farms were behind on mortgage payments in 1933, and in 1934, default rates on home mortgages exceeded 38 in half of US cities.

The fall in house prices also led to a sharp rise in mortgage defaults and foreclosures, which has increased the supply of homes on the market and caused house prices to fall further.

German banks grant mortgages only to a maximum of 60 of the value of a house, instead of the 100 mortgages that were frequently seen in the US and United Kingdom.

The state is an epicenter of the housing bust and the foreclosure crisis.

Around sixty sub prime lenders have already gone bankrupt.

Some limited previous experience with mortgage modifications is not encouraging.

The largest number of defaults on sub prime mortgages will occur this spring.

In the past, banks kept loans and mortgages on their books, retaining the credit risk.

When normal mortgages did not prime the pump enough, he encouraged them to take out variable rate mortgages at a time when interest rates had nowhere to go but up.

Given the large number of negative equity homeowners, there is a risk that defaults and foreclosures will continue.