Positive Influence and Explosion of Crisis in American Sub-prime Mortgage Markets

The American home mortgage market has experienced three stages of development and has now enters into the stage of securitization. The changes of US financial system and development of real-estate market promoted the development of Sub-prime Mortgage Markets. Positive influence of Sub-prime Mortgage Markets is that low-income people can afford to houses. In September 2006, the US Sub-prime Mortgage Market crisis broke out, and the characteristics of the crisis are that the borrowers are canceled foreclose and rising mortgage credit bad debt. Predatory lending and supervising and managing vacancy are the two main problems existed in American Sub-prime Mortgage Market.