Thursday, 1 November 2007
U.S. Subprime Mortgage - Boom or Bust for S.A. Home Loans Markets
I'm assuming that most of the people that read this BLOG are either Property Guru's or Financial Barons so if I talk about the U.S. Subprime Mortgage problems that have been going on for the last month or two you're most likely up to date.
If not take a quick read through: Economist.com
The question that's been on everyones minds is; Will the U.S. Subprime mortgage lending crisis effect South Africa's mortgage market? Personally, I don't think so and so far it hasn't. If anything we've been one of the few fortunate countries that haven't been affected. We're fortunate enough in South Africa, that our securitization mortgage market is alot smaller than our bank lending market. Their are very few companies in South Africa that use securitization as a means of supplying funding i.e. SA Home Loans, Eagle Bond Originators, Rudco Finance and now Integer Bond Originators but there's still alot of scepticism amongst South Africans and the majority still prefer using the major banks.
If anyone has experienced the dip in either the U.S. market or if anybody thinks this is still yet to affect us please comment below.