The Subprime Mortgage Crisis in the U.S

analytical Essay
1589 words
1589 words

The argument over who should be at fault for the subprime mortgage crisis and housing market collapse in the United States has been a heated debate. Even though home foreclosure keeps rising, there should be some accountability for the economic meltdown resulting from the subprime mortgage situation. Should we blame banking institutions, mortgage lenders, brokers, and investors for this crisis? Should minorities be blamed for recklessly accepting loans and defaulting on them after realizing they could not meet their obligation? Should we blame the government for their inactions for not protecting victims of predatory lending?

Some will suggest that borrowers, banking institutions, mortgage lenders, brokers and investors, government, and politicians all should share the blame. The bottom line is that no one is taking the blame for this crisis. The fact of the matter is that someone has to take the blame for the subprime mortgage situation; moreover, immediate action must be taken to rectify the problem. This economic crisis is a collective effort for each lender, broker, borrower, investor and the U.S government that were influenced by greed. Therefore, how could they rectify this problem? A simple solution to stop the foreclosure crisis is to offer the rights to rent to people that have fallen victims of this crisis.

Congress should temporarily modify the rules on foreclosure to give families facing foreclosure, the right to rent their homes at the market rate for a substantial period of time. This change in foreclosure rules will give banks a real incentive to re-negotiate the conditions under which homeowners can continue to stay in their homes as owners. It will be in the banks best interest, since they don’t want to be...

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preserve and protect the amercian dream of home ownership; stop abusive practices in the housing market Washington, DC: Retrieved from

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In this essay, the author

  • Analyzes bajaj, v., & fessenden, f. (2007, november 4). what’s behind the race gap?
  • Opines that baker, d., keeps it simple: stop the foreclosure crisis with the right to rent.
  • Explains the importance of protecting the amercian dream of home ownership; stop abusive practices in the housing market.
  • Argues that the subprime mortgage crisis is an on-going financial problem and a housing market nightmare for the united states.
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