Rutkin, Alan; Tugander, Robert
July 2008
Tort Trial & Insurance Practice Law Journal;Summer/Fall2008, Vol. 43-44 Issue 4 & 1, p169
Academic Journal
The article discusses the adverse impact of the subprime mortgage crisis on the financial services industry. It is stated that nearly all financial institutions face potential exposure to subprime litigation due to securitization of sub-prime loans. It is mentioned that the securitization of subprime loans was quite profitable when the housing market was doing well. However, when the housing market suffered a severe decline, and monthly payments on adjustable rate mortgages increased, defaults started to increase. It is stated that subprime-mortgage losses are responsible for an increase in securities fraud class-action suits. It is mentioned that subprime mortgages, due to their risk, carried higher interest rates, and also offered investors higher returns.


Related Articles

  • Not Ready for Subprime.  // New York;3/10/2008, Vol. 41 Issue 9, p30 

    The article profiles several homeowners and subprime mortgage holders who are in danger of having foreclosures on their homes. George Mascia, Dr. Bola Omotosho, and Michael Niebauer describe how they were talked into getting their homes refinanced, and how adjustable mortgage rates (AMR) helped...

  • Agencies Release Model Disclosures. Adler, Joe // American Banker;5/23/2008, Vol. 173 Issue 100, p20 

    The author reports on guidelines which have been released regarding model disclosures. According to the article, the guidelines recommend that banks inform customers of the risks associated with subprime loans and adjustable rate mortgages (ARM). Descriptions of the different types of guidelines...

  • Modification Plan Called Insufficient. Hopkins, Cheyenne // American Banker;1/29/2008, Vol. 173 Issue 19, p3 

    The article discusses a report released by the Center for Responsible Lending regarding plans by the U.S. Treasury Department to fast track loan modifications. The report found that only a small minority of homes would be saved by fast tracking loan modifications. The number of outstanding...

  • Long and short of it for fixed rates. Hollingworth, David // Mortgage Strategy;4/2/2007, p37 

    The author reflects on lenders' long-term and short-term fixed rates in Great Britain. He asserts that some lenders have a fixed rate of 5.49% for 25 years, while other have 10 year deal at the rate of 4.95%. He argues that in long-term the money are low in comparison with shorter-term and the...

  • ARM Service for Servicers. Hochstein, Marc // American Banker;12/17/2007, Vol. 172 Issue 241, p18 

    The article reports that Wolters Kluwer Financial Services of Minneapolis, Minnesota, has a method to help mortgage servicers modify borrowers' adjustable-rate loans. The company, a vendor of forms and compliance software, claimed this service contains a set of documents allowing mortgage...

  • B&C Delinquencies Approach 19%. Muolo, Paul // National Mortgage News;11/12/2007, Vol. 32 Issue 8, p12 

    The article reports on the increase of delinquency rate on subprime mortgages in the U.S. which has reached almost 19% in June 30, 2007 compared to the 10.1% in June 2006. The residential delinquencies of all types are expected to increase as the deteriorating home prices and job losses are...

  • FTN likes 10/1 hybrid ARMs as 15s remain cheap. Nelson, Robert // Asset Securitization Report;8/21/2006, Vol. 6 Issue 33, p11 

    The article reports that FTN Financial has recommended that the whole loan 10/1 hybrid Adjustable-Rate Mortgage is a way to take advantage of the cheapness in the 15-year sector in the U.S. It is noted that the 30-year market is four basis points cheap relative to the 15-year sector. The...

  • An Investigation of Adjustable-rate Mortgage Pricing Features. Templeton, William K.; Main, Robert S.; Orris, J.B. // Financial Services Review;Winter2002, Vol. 11 Issue 4, p367 

    Investigates costs and risks associated with the choice of terms for adjustable rate mortgages. Impact of mortgage-rate changes on the size of payments for adjustable-rate mortgages; Examination of the choice of length of the fixed period before the occurrence of the first interest rate;...

  • Securities Suit Settlement Costs Are Soaring. Hays, Daniel // National Underwriter / P&C;11/5/2007, Vol. 111 Issue 41, p22 

    The article reports on the increased cost of federal securities class action settlements in the financial services industry in the U.S. It is stated that the average suit settlement in 2007 was $80.3 million and the number of suits filed is anticipated to exceed by 33 percent compared to 2006....


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics