Subprime mortgage crisis/Timelines

Sources

In addition to the sources that can be reached using the internet links shown thus [99], this timeline draws upon otherwise unpublished information obtained by interview and published in Fools Gold by Gillian Tett (see the bibliography subpage). Numbers shown thus {123} are the relevant page numbers in that book.

The 1980s

Financial deregulation [1], [2].

Savings and Loans crisis - Failure of 296 US "Savings and Loans" mortgage lenders [3]

1990 - 2003

Progressive discount rate cuts by Federal Reserve (from 7% in 1990 to 0.75% in 2003 [4].

Housing boom begins (8% increase 2002 to 2003)

1999

Fannie Mae eases credit terms for subprime mortgages [5]

2002

President sets target for expanding minority home-owning [6].

2003 - 2006

Progressive discount rate increases (from 0.75% to 6.25% in 2006).

Housing boom continues [7] (Average 2006 house price about 70% above 2000 level)

2007

June

25 Two of the Bear Stearns bank's hedge funds are threatened by losses from mortgage defaults [8].

August

6 American Home Mortgage becomes bankrupt [9].

9 French bank BNP Paribas freezes some of its funds because it is unable to value its US mortgage-backed assets. [10]

'For further developments see the crash of 2008 timelines