If you are a first-time homebuyer and a veteran, the VA allows you to obtain a mortgage for new construction. However, many veterans are unaware that the VA does not provide the actual loan. Instead, the VA insures the loan with banks and mortgage lenders in the event you default on your mortgage. Therefore, you must find a lender who is willing to approve you for a construction loan. A Closer Look at VA Construction Loans The Department of Veterans Affairs states you can use a VA-backed…
the worst economic recession since the great depression that occurred in the 1930’s. In 2008, the US housing market collapsed enormously, resulting in a global financial crisis which caused millions of taxpayers, and financial institutions to go bankrupt. Moreover, several business outsiders made large sums of profit from the crisis. This is seen throughout the documentary film, Inside Job and nonfiction film The Big Short. In this comparative essay, two texts will analyse the similarities and…
The financial crisis is an event in time that we will all remember. Professor Corcoran hosted an event that would focus of discussions to figure what happened and what we could do to fix the financial crisis. This allowed for opinions to flow and be made. There were many reasons that the financial crisis happened. If I could put the problems in a rating system based on Professor Corcoran’s thoughts I would say that banks becoming greedy was the main reason for the crisis. The banks rolled the…
Having a financial crisis will result in the change or reversal of capital flows and will influence the international financial system. The volatility and perverted allocations of capital flow will make it difficult to measure risk and identify the potential and existing risk…
Introduction When banks and large corporations have huge pending bills that they are unable to settle, they can turn to the government for a financial bailout. According to Casey and Posner (2015), a bailout is a transfer of resources, including money from the government to a private agent or even to an allied government. Government bailouts are aimed at preventing the potential collapsing of the economy by insuring the corporations against collapse. Notably, there was a substantial bailout in…
(The Federal National Mortgage Association). This government sponsored enterprise (GSE) was founded during the great depression by Congress, its aim was to stimulate the housing market by making more mortgages available to moderate-to-low income borrowers. They do not originate or provide mortgages to borrowers, they purchase already issued mortgages off the mortgage originators and guarantees them via the secondary mortgage market. Banks or mortgage originators who sold mortgages onto Fannie…
Boston Tea Party The British East Indian Company went into debt after having corrupt management and becoming involved in a war that cost them a great deal of money. This caused me and another seventeen million pounds to be packed into chests and stored in a warehouse. We all started to lose hope as the days went by and we remained unsold. Then an unlikely hero emerged. His name is Lord North, the prime minister of Britain. He originally put a tax on us that resulted in Dutch tea to be smuggled…
three causes that contributed to the housing bubble were low mortgage interest rates, low short-term interest rates, and relaxed mortgage lending standards. One crucial cause of the housing bubble was the widespread belief that home prices would continue to rise. Therefore, allowing borrowers to get low mortgage interest rates. The belief was if “borrowers continued to accumulate housing equity and lenders and investors were profitable, mortgage credit was readily available and this…
September 28, 2014 Cook County, Illinois filed suit against Wells Fargo, the nation’s largest mortgage lender, claiming over $300 million in damages. The suit alleged that Wells Fargo’s unethical practices unfairly targeted low-income, minority families and contributed to the housing crisis that left the city with abandoned buildings and million of dollars lost in property taxes. The banking institution was accused of knowingly distributing home loans to black and Hispanic customers, many of…
portrays a story of a four individual outsiders working in the world of finance in Wall Street, New York who predicts that the credits and housing bubble will collapse soon before anyone else does. At that time in the US, banks were lending out mortgages to people who could not afford housing and dealing with high risky lending rates meanwhile, the citizens were not paying back their loans from banks. So these few individuals thought maybe if they beat a large sum of money by betting on the…