Bank of America sells securities on the mortgage for $ 1 billion

One of the largest U.S. banks Bank of America were for sale securities on the mortgage, the total cost of which is at least $ 1 billion. Among these papers there are loans that have already been written off, as well as the rights to service mortgages. At the same time representatives of the Bank of America comments on this issue do not give. According to the company www.socmart.com.ua, the system of mortgage loans with the highest risk category of subprime crisis was subjected to the greatest extent. For several years, these loans were issued increasing the volume in the U.S., and requirements for borrowers are gradually reduced. In early 2007, the subprime mortgage market collapsed, and in the category of subprime greatly increased the number of defaults and delinquent loans. Parallel with adjustment took place in the local property market. In summer 2007, the mortgage crisis affected the financial markets. It became known that the balance of the leading banks have a large number of complex debt instruments that are derived from mortgages. As a result, these assets are illiquid because the estimate of their fair value was not possible. Mortgage assets was massive write-offs, which led to a shortage of liquid assets in the financial system of the world, and banks have reluctantly begun to lend to each other. According to specialists Socmart, America has every chance of repeating the fate of Japan over the next 10-20 years, which will result in stagnating market. Developed economies have just started my recovery, and if there will be a similar push from the U.S. recession could occur. A new crisis could start again with a mortgage, and the deterioration in the real estate market is enough to restore interrupted, as costs for construction and equipment of houses, until recently accounted for 15% of U.S. GDP. And at this point in this market is the strongest decline. For example, in the first quarter of this year, defaults on mortgages rose by 48%, bringing their number had reached 3.6 billion, the highest level since 2001.