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.

The origin of the problem is uncertainty about banks exposure to sub prime mortgages, the risks of which have been carelessly assessed by rating agencies due to conflicts of interest.

The Right Weights for Mortgage Risks

Occupy the Mortgage Lenders

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

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

Conflict of interest

The lesson is clear security interests must come before business interests.

Mortgage debts, too, must be written down.

Ideas over Interests

The Coming Age of Interest

Conflict of interest

Best interests of the child

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

America s Middle East interests are not identical with those of Europe.

Mortgages became more widely available.

Mortgage brokers were happy to get in on the act.

It was called securitized mortgages.

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

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.

Surely, the national interests of the US and the West are not the only ones that matter.

Conflict of interest and confidentiality

Indeed, the foreclosure rate is increasing.

The problem was not just sub prime mortgages.

The claimant sought from the Court an order of foreclosure.

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.

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

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

All departments have their own role.

Vested interests are everywhere.

Growth is demanded by shareholders.

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.

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.

(b) Actions to make security interests effective against third parties and to enforce security interests are stayed

Dan Ariely Beware conflicts of interest

But these interests are hard to quantify.

Vested interests may also play a role.

The views of all stakeholders have to be accommodated.

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.

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