Subprime lending

    Page 4 of 33 - About 326 Essays
  • Importance Of Asymmetric Information In The Financial Market

    Agencies." Law In Context 30, no. 1: 114-145.) During the crisis, the Credit Rating Agencies (CRA) generally failed to provide accurate assessment on the risks of subprime mortgage related securities. Actually, the CRA like Moody and S&P gave high rating on those securities. In 2007, the senior tranche of the CDO, which involved subprime mortgages, received the highest rating of…

    Words: 1013 - Pages: 4
  • Case Analysis: What Caused The Mortgage Crisis

    crisis was instigated by consumer demand, oblivious politicians, and the competition against banks, small brokers and lenders. There are three types of mortgages which are the Government (FHA), Conforming (Fannie Mae and Freddie Mac) and the private subprime lenders that are usually funded by larger banks. These lenders have established a practice of buying the loan from the same broker after it was closed down, and its market are the consumers with good or bad credit or unproven income. When…

    Words: 859 - Pages: 4
  • Housing Crisis Research Paper

    The housing crisis affects millions of Americans because of many peoples income and not being able to afford it . Many government programs are established to help many people . In different places housing prices are different . The better the environment the higher the prices . The not as good quality the environment the lower the cost . There have been many programs that have been established to help with poverty . In inner cities the price of housing is much lower because of the…

    Words: 1483 - Pages: 6
  • 2008 Great Recession: A Case Study

    External Factors and Internal Factors The 2008 great recession had caused several economic downturns to many financial institutions, which forced to go out of business or filed a bankruptcy protection. This financial crisis had caught many economists off-guarded the severity of financial damages that the crisis created. There were numerous factors that caused the financial collapse included the over-heat real estate market, the mortgage-back security products, the loose monetary policy, the…

    Words: 352 - Pages: 2
  • How To Fix Wealth Inequality

    Reader response: A long way to achieve wealth equality In the article “How to Fix Wealth Inequality” (Hecht, 2014), the main thesis presented by author focuses on the causes of wealth inequality in the USA and the attempts to solve the problems. The gap of household wealth between the colored people and the white are large nowadays, the methods of changing the landscape are still in process. The author analyzed the current situation and raised people’s awareness towards wealth inequality. This…

    Words: 503 - Pages: 3
  • How Home Insurance Fraud Affects You

    How Home Insurance Fraud Affects You Insurance fraud is a real issue when it comes to home insurance in Chandler, AZ. Fraudulent home insurance claims can be phony claims and fake property damage, to name a few. If you are considering exaggerating your insurance claim, don’t. If you know someone who you suspect committed insurance fraud, then you should report them because it affects you as well. Fraud Drives Up Premiums Fraudulent insurance claims are often paid by insurance companies. If you…

    Words: 319 - Pages: 2
  • What Is AIG Ethical?

    The Company AIG was a company that had risen to the top through unethical procedures and acts. The company became a big financial giant in the insurance industry and later added the subprime mortgages to its portfolio that increased its profits into the billions. The company cut corners by aggressively lobbying for laws and rulings that would go in their favor (Thorne, Ferrell, & Ferrell, 2011). They came under investigation by the SEC because they thought they were reporting profits wrong.…

    Words: 816 - Pages: 4
  • New Deal Advertisement Analysis

    “The collapse of the United State economy in the 1930s forced government to enact a housing program – part of President Franklin Roosevelt’s New Deal program”. (Macionis, p. 325, 2013) The New Deal program allowed public housing policies; which provides financial grant to homeowners and builders. Originally conceiving this ideas seems to be a good answer for urban housing problematic but this plan didn’t flourish with serious inadequacy. More than a decade ago, there were a flood of…

    Words: 571 - Pages: 3
  • The Housing Market

    Washington Post wrote an article about some of the contributing factors which enable buyers to obtain loans they did not qualify for, as well as qualifying for the new loans that were created to ensure the approval of the loan. Sheree R. Curry said, “Subprime loans were only part of what led to the housing market crash. Here are several contributing factors and the changes they spurred in the mortgage industry; such as, low-documentation loans, adjustable-rate mortgages, equity line of credit,…

    Words: 831 - Pages: 4
  • Home Depot Executive Summary

    Home depot was drastically affected by the housing market crash and their numbers showed it; a few things can explain their numbers such as operating leverage, margin of safety, and cost behavior (Edmunds, Tsay, & Olds, 2011). The company announced that they suffered a 3% percent decrease in revenue in the first half of 2007 compared to the same time -frame in 2006; in addition to the 3% decreases in revenue they also suffered a 21% decline in profits. The 3% decline in revenue contributed to…

    Words: 320 - Pages: 2
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