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Topic: Business
Number of pages / Number of words: 14 / 3751
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Thus, increasing mortgage fraud too. And, it starts with low initial payment enticing borrowers but at the same time costly fees and prepayment penalties associated with predatory loans also strip equity, making it harder for borrowers to refinance and forcing them into foreclosure more quickly.

From that, housing market boom which is an another cause for the crisis...


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Easy credit, combined with the assumption that housing prices would continue to appreciate, had encouraged many subprime borrowers to obtain adjustable-rate mortgages they could not afford after the initial incentive period. It fueled housing price increases and consumer spending. Americans spent $800 billion per year more than they earned...


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