Subprime Mortgage facts

While investigating facts about Subprime Mortgage Crisis and Subprime Mortgage Lenders, I found out little known, but curios details like:

The economist Peter Schiff repeatedly warned investors in 2006 about the coming subprime mortgage crisis on various news shows and was either laughed at or shouted down by pundits who recommended investing in banks that later failed

how subprime mortgage crisis happened?

Standard and Poors, the rating company (and among others) that helped create the financial meltdown of 2008 was "paid a fortune by Wall Street to hand out pristine AAA ratings to the subprime mortgage-backed securities"

What caused the subprime mortgage crisis?

In my opinion, it is useful to put together a list of the most interesting details from trusted sources that I've come across answering what is subprime mortgage crisis. Here are 9 of the best facts about Subprime Mortgage Crisis 2008 and Subprime Mortgage Meaning I managed to collect.

what's subprime mortgage?

1. Wells Fargo was charged $175M for discriminatory lending between 2004 to 2009. Minorities were directed to subprime mortgages, or made to pay higher fees/rates than white borrowers with equal credit. Areas with the highest concentration of victims included Chicago, Cleveland & Baltimore.

2. Goldman Sachs made a 'bet' on the subprime mortgage market collapsing, and earned record profits in 2007 at $17.6 billion pretax, and again in 2009 at $20 billion pretax

3. The 2007 film 'Redline' was funded by a subprime mortgage firm ($26million). It features a scene where two $500,000 cars crash.

4. Prior to the subprime mortgage crisis in U.S., Moody’s had issued an AAA rating to 45,000 mortgage-related securities between 2000 to 2007, which after the crisis had slumped to just 6 AAA ratings for mortgage-backed securities in 2010

5. Standard & Poor's only paid $1.5 billion in total settlement value regarding the 2008 subprime mortgage crisis. The agency is also on record for having made a $2 trillion error in the U.S' credit rating.

6. Im 2008 the US government spent up to 700 billion dollar to bail out banks involved in the subprime mortgage crisis.

7. Our government had a major, unintentional role in creating the housing bubble. To make homes more affordable for low-income groups, Clinton mandated Fannie and Freddie to purchase subprime mortgages. Bush furthered these requirements. Banks then used them to facilitate predatory lending.