Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling below *** percent in the second quarter of 2023. In the second half of 2023, the delinquency rate picked up, but remained stable throughout 2024. In the first quarter of 2025, **** percent of mortgage loans were delinquent. That was significantly lower than the **** percent during the onset of the COVID-19 pandemic in 2020 or the peak of *** percent during the subprime mortgage crisis of 2007-2010. What does the mortgage delinquency rate tell us? The mortgage delinquency rate is the share of the total number of mortgaged home loans in the U.S. where payment is overdue by 30 days or more. Many borrowers eventually manage to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost ** trillion U.S. dollars in 2024. Not all mortgage loans are made equal ‘Subprime’ loans, being targeted at high-risk borrowers and generally coupled with higher interest rates to compensate for the risk. These loans have far higher delinquency rates than conventional loans. Defaulting on such loans was one of the triggers for the 2007-2010 financial crisis, with subprime delinquency rates reaching almost ** percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under ** percent of all subprime mortgages in 2011.

The Global Financial Crisis of 2008-09 was a period of severe macroeconomic instability for the United States and the global economy more generally. The crisis was precipitated by the collapse of a number of financial institutions who were deeply involved in the U.S. mortgage market and associated credit markets. Beginning in the Summer of 2007, a number of banks began to report issues with increasing mortgage delinquencies and the problem of not being able to accurately price derivatives contracts which were based on bundles of these U.S. residential mortgages. By the end of 2008, U.S. financial institutions had begun to fail due to their exposure to the housing market, leading to one of the deepest recessions in the history of the United States and to extensive government bailouts of the financial sector.

Subprime and the collapse of the U.S. mortgage market

The early 2000s had seen explosive growth in the U.S. mortgage market, as credit became cheaper due to the Federal Reserve's decision to lower interest rates in the aftermath of the 2001 'Dot Com' Crash, as well as because of the increasing globalization of financial flows which directed funds into U.S. financial markets. Lower mortgage rates gave incentive to financial institutions to begin lending to riskier borrowers, using so-called 'subprime' loans. These were loans to borrowers with poor credit scores, who would not have met the requirements for a conventional mortgage loan. In order to hedge against the risk of these riskier loans, financial institutions began to use complex financial instruments known as derivatives, which bundled mortgage loans together and allowed the risk of default to be sold on to willing investors. This practice was supposed to remove the risk from these loans, by effectively allowing credit institutions to buy insurance against delinquencies. Due to the fraudulent practices of credit ratings agencies, however, the price of these contacts did not reflect the real risk of the loans involved. As the reality of the inability of the borrowers to repay began to kick in during 2007, the financial markets which traded these derivatives came under increasing stress and eventually led to a 'sudden stop' in trading and credit intermediation during 2008.

Market Panic and The Great Recession

As borrowers failed to make repayments, this had a knock-on effect among financial institutions who were highly leveraged with financial instruments based on the mortgage market. Lehman Brothers, one of the world's largest investment banks, failed on September 15th 2008, causing widespread panic in financial markets. Due to the fear of an unprecedented collapse in the financial sector which would have untold consequences for the wider economy, the U.S. government and central bank, The Fed, intervened the following day to bailout the United States' largest insurance company, AIG, and to backstop financial markets. The crisis prompted a deep recession, known colloquially as The Great Recession, drawing parallels between this period and The Great Depression. The collapse of credit intermediation in the economy lead to further issues in the real economy, as business were increasingly unable to pay back loans and were forced to lay off staff, driving unemployment to a high of almost 10 percent in 2010. While there has been criticism of the U.S. government's actions to bailout the financial institutions involved, the actions of the government and the Fed are seen by many as having prevented the crisis from spiraling into a depression of the magnitude of The Great Depression.

this data base contains african indexes returns , namely MASI , NSE20, INVSAF40 and TUNINDEX before and after the subprime crisis in order toinvestigate the impact of this crisis on linkages among african markets

Formaat: MP4
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27 February 2008

Online beschikbaar: [01-12-2014]
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Uploaded on Jun 11, 2008
Video summary of the ALDE workshop "The International Financial Crisis: Its causes and what to do about it?"

Event date: 27/02/08 14:00 to 18:00
Location: Room ASP 5G2, European Parliament, Brussels
This workshop will bring together Members of the European Parliament, economists, academics and journalists as well as representatives of the European Commission to discuss the lessons that have to be drawn from the recent financial crisis caused by the US sub-prime mortgage market.

With the view of the informal ECOFIN meeting in April which will look at the financial sector supervision and crisis management mechanisms, this workshop aims at debating a wide range of topics including:
- how to improve the existing supervisory framework,
- how to combat the opacity of financial markets and improve transparency requirements,
- how to address the rating agencies' performance and conflict of interest,
- what regulatory lessons are to be learnt in order to avoid a repetition of the sub-prime and the resulting credit crunch.

PROGRAMME

14:00 - 14:10 Opening remarks: Graham Watson, leader of the of the ALDE Group
14:10 - 14:25 Keynote speech by Charlie McCreevy, Commissioner for the Internal Market and Services, European Commission
14:25 - 14:40 Presentation by Daniel Daianu, MEP (ALDE) of his background paper
14:40 - 15:30 Panel I: Current features of the financial systems and the main causes of the current international crisis.

-John Purvis, MEP EPP
-Eric De Keuleneer, Solvay Business School, Free University of Brussels
-Nigel Phipps, Head of European Regulatory Affairs Moody's
-Wolfgang Munchau, journalist Financial Times
-Robert Priester, European Banking Federation (EBF), Head of Department Banking Supervision and Financial Markets
-Ray Kinsella, Director of the Centre for Insurance Studies University College Dublin
-Servaas Deroose, Director ECFIN.C, Macroeconomy of the euro area and the EU, European Commission
-Leke Van den Burg, MEP PSE
-David Smith, Visiting Professor at Derby Business School

this data base contains USD/MAD and EUR/MAD returns in addition to S&P GSCI returns from 15 October 2005 until the 31 December 2014 as the main sample,then we divided this sample into four subsamples, (after & before) the subprime crisis, and (before & after) the debt crisis

Companies in the Subprime Auto Loans industry have contended with rising interest rates and significant economic volatility. Several small, specialized creditors have been pushed to bankruptcy because of diminishing profit and growing subprime auto loan delinquencies. According to Fitch Ratings Inc., the index of the 60-day delinquency rate of subprime auto loans reached 6.11% in September 2023 and remained significantly elevated at 6.00% in October 2023 (latest data available), a worse rating than during the great financial crisis. As a result, many businesses have exited the industry. However, in 2024 the Federal Reserve cut interest rates by half a point and is anticipated to cut rates further in the near future which will positively impact the industry. The pandemic shocked industry revenue in 2020, dampening profit and income for many lenders as stay-at-home orders rendered personal transportation less crucial to many. However, as the economy settles back to normal, many subprime consumers will return to work and lead the industry to growth in the latter part of the period. Overall, industry revenue has lagged at a CAGR of 1.2% to $19.0 billion over the five years to 2024, including an expected jump of 0.4% in 2024 alone. Despite the potential payout of subprime interest rates, many companies in the Auto Leasing, Loans and Sales Financing industry (IBISWorld report 52222) still chose not to expand the number of high-risk loans in their portfolios. Instead, they have sought super-prime and prime borrowers during heightened delinquency rates, which will aid in recovery. Moreover, many primary auto dealers have begun reducing their auto financing divisions to eliminate high-risk borrowers. Moving forward, industry revenue declines will be limited by rising access to credit and growth in consumer confidence, which will accelerate vehicle sales. Also, interest rates are expected to come down as the FED continues to monitor inflation and reduce rates accordingly. In addition, some consumers will seek to lock in financing deals as interest rates continue to be reduced. Overall, industry revenue is forecast to slump at a CAGR of 1.2% to $17.9 billion over the five years to 2029.

Graph and download economic data for Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks (DRSFRMACBS) from Q1 1991 to Q1 2025 about domestic offices, delinquencies, 1-unit structures, mortgage, family, residential, commercial, domestic, banks, depository institutions, rate, and USA.

This corpus helped to investigate the business sections of seven Canadian newspapers over a period spanning from 2001 to 2008 in English and in French. The newspapers are: The National Post, The Globe and Mail, The Toronto Star, The Gazette, La Presse, Le Devoir and Le Droit. The focus was on the sources whose speech was selected and reported by journalists in direct or indirect style when covering new subprime-driven financial derivative instruments, namely collateralized debt obligations (CDOs) and credit default swaps (CDS). With the use of the monolingual concordancer WordSmith 6.0, we looked at the following keywords: collateralized, backed, CDO, CDS and their French equivalents. The results were treated in 2 Excel files. In particular, we identified the different voices/actors who used the financial innovation terms. These voices could be the journalists or different institutional actors such as central banks or Canadian banks. When reported speech was used, we also identified reporting verbs.