New Century Financial corp Flashcards
0
Q
How much did Fannie and Freddie guarantee in mortgages in 2008
A
1/2 of the US market of $12 trillion
1
Q
Nearly 1/2 of recent mortgage foreclosure victims in the US obtained their loans from…
A
Subprime lenders
2
Q
Groups that failed to rein in imprudent business practices
Of subprime mortgage lenders? 4
A
1 politicians
2 regulatory authorities
3 ratings agencies
4 independent auditors
3
Q
Deregulation (of the 1980s) did not cause explosive growth until what happened and when?
A
Securitization of mortgage loans at the turn of the century
4
Q
Securitization
A
Structured finance process where assets, receivables or Financial instruments (such as mortgage loans)
Are acquired and classified into pools and offered as collateral
For 3rd party investment
5
Q
During the subprime mortgage bubble the size of the loan was determined by what?
A
The consumer self reporting their income
