With the current subprime meltdown taking place within the US Economy, many people are losing their homes and millions more are worried about how they are going to make their mortgage payments. In his book, Subprime Meltdown: From U.S. Crisis to Global Recession, author and real estate expert Charles Brownell addresses how the subprime mortgage was created, how it works, and what factors led to the current subprime mortgage crisis.

In 114 pages, Brownell succeeds in providing a comprehensive understanding of how a number of different sectors contributed to this crisis which has resulted in far more world wide implications. Brownell explains how the Federal Government and Congress instigated the current crisis between 1975 and 1980 when they passed legislation that forced financial institutions into the subprime market stating that it was discriminatory not to give loans to low and moderate income people. He details how the financial institutions could not afford to give loans that were considered high risk so they came up with clever ways to profit. A number of the ways that he describes were very shady and ended up costing mortgage holders much more than they thought. As well, he shows how practices of financial institutions resulted in what is known as predatory lending.

People lacking knowledge on subprime mortgages will find the book very easy to understand. Brownell provides clarity on a very confusing subject. Not only does he explain how mortgage lenders work with financial lenders to ensure the best profit for them, he also provides an account of all those hidden fees that people often don't know about. As well, he offers solutions on how to reduce the chance of another subprime mortgage crisis from recurring. For those seeking advice on how to make sure they choose a mortgage that they can afford, helpful tips on managing your money and what to look for when choosing a mortgage are provided.

The book is a very educational read for those trying to make sense of the subprime mortgage market. Although it is about a serious situation, it is very optimistic with an important message of the need for consumer education.

Tracy Roberts, Write Field Services