During the subprime problem the U.S. press and finance news channels was pretty active in using the term called “toxic assets” in many of their press releases and other articles. If you have often wondered what these are and how they were responsible for many banks and financial institutions to tighten up their lending, then read on to understand more about them. Impact on mortgage loans Toxic assets are those financial investments backed by unsafe subprime home mortgages. You can recognize them as you drive around and see many properties with foreclosure signs on them. They are the ones that have proved to be “toxic assets” to the lending institutions who lent money in the first place to borrowers who have not been able to repay the mortgage and have been forced to put up foreclosure notices. These toxic assets are held by sizable U.S. financial institutions and are dragging
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