THE SUBPRIME MORTGAGE LOANS AS AN INITIATOR TO ACCELERATE THE EMERGENCE OF CREDIT MORTGAGE CRISIS
Keywords:subprime mortgage loans, real estate market, mortgage crisis, financial crisis
The working paper analyzes the "subprime" mortgage loans as instability accelerators in the mortgage market, with regard to transmission of disorders from the real estate market to credit markets and financial sector. In a research also analyzes the historical review of the crisis in the real estate market and amnesia of financial regulators to learn from previous losses. Some of the causes of instability have been created from variability of house prices and residential investment in the period up to August 2007. , and a some of the reasons we find in a deficiencies of the credit mechanism. Following the above paragraph in the paper, we tried to explain the structure of the mortgage market, the percentage of approval of subprime mortgage loans and try to prove that the subprime mortgage accelerator loan was occurrence of mortgage crisis, which rapidly transferred to the financial markets in USA, and througout the world economies and even in Serbian economy.
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