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When there is a huge amount of the mortgages are sold in order to fulfil the securities of the different mortgage-backed securities, then there occurs mortgage crisis. Due to the mortgage crisis, there is a huge amount of the risks in the different types of the funds are spread. These funds include mutual funds and other types of the funds that are owned by the different corporations. There are a lot of types of the mortgages that you should avoid. Some of them are 40-year fixed rate mortgages, adjustable mortgages, interest-only mortgages, low down payment loans, and interest-only ARMs. Due to the crisis of the mortgages, the growth and the development of the Nigerian economy was affected a lot. If you are not able to get an idea of the growth and the development of the mortgage crisis on the Nigerian economy, then you can get help from the dissertation writing services. Here, we will discuss the mortgage crisis effects on the growth and development of the Nigerian economy.
1) Fear in the markets
The biggest effect of the mortgage crisis on the Nigerian economy is that there occurs a lack of confidence in the financial system. Its reason is that Mortgage market is the biggest market and due to the crisis in this market, there occurs a scare among the investors and they are not daring to invest in Nigeria.
2) Direct effects on the industry
Along with the markets, these mortgage crisis has also affected the different industries and stocks in Nigeria. Due to this reason, most of the firms that are providing the financial support to the Nigerian economy are disappearing. Its effect is that billions of dollars are wiped out from the Nigerian economy. Due to this reason, different housing industries are also facing a lot of challenges.
3) Effects on the jobs in the financial sector
Due to the mortgage crisis in Nigeria also have a lot of effects on the availability of the jobs in the Financial sector. Moreover, the employees that are already in the financial sectors are also facing a lot of problems because they are not able to get the payments on time.
4) Effects on individuals
The mortgage crisis in Nigeria not only affected the industries and the other organizations, but it has also lasted a lot of effects on the individuals. The most common effects are on the minorities that are owning the homeownership and the evictions of the renters. They are also facing a lot of issues declines in the net worth.
5) Some other risks
There are also some other risks that are faced by the Nigerians due to the mortgage crisis. The most important crisis in this regard is given below;
A) They face a lot of credit issues
B) They are not able to asset the risks of the prices
C) They are also facing a lot of liquidity risks due to the mortgage crisis
These are the major effects that are faced by the Nigerians due to the mortgage crisis.