After the Chaos – What Types of Mortgages Remain
The subprime mortgage meltdown had a chaotic effect on the US economy and world financial markets in 2008. After the subprime banks closed en masse, the Alt-A lenders were shut down, eliminating all aggressive financing options in the US mortgage market. This has led to a major credit crunch and has had a disastrous effect on the US mortgage industry and overall economy.