Friday, May 22, 2020

Written And Oral Communication Skills - 1223 Words

Written and Oral Communication Skills Criminal justice is an area of justice which functions in view of on the tremendous increase in criminal activities (Levine, 2002). The technological development has fueled savvy in the organization and the rates of committing crimes. In light of this, there are numerous job opportunities that require people who are qualified in criminal justice to help curb this menace. Other than the technical skills, they also require the potential candidates to have relevant writing and communication skills. These skills are emphasized on each job vacancy regarding criminal justice; hence, this paper outlines the major required writing and communicating skills, and their effectiveness. To start with, the potential or the aspiring candidate should uphold excellent research, writing and analytical skills. It is quite evident that the work of criminal justice officer involves unearthing hidden information to accrue evidence or a link to the case an officer is de aling with. This requires deluxe research skills that will enable the officer to acquire the information required. Similarly, the officer has to employ critical thinking and analytical skills when engaging in this research (Teller, 2006). Moreover, on the job requirements, the applicant is supposed to be an eloquent communicator with impeccable presentation skills. Communication is the backbone pillar for an effective criminal justice officer. In the field of work, the officer is expected toShow MoreRelatedThe Importance Of Oral Communication Skills Among University Graduates From A Managerial Perspective995 Words   |  4 PagesThe gap between oral communication proficiency among university graduates and the workplace requirements of the same has received a contentious attention in the recent past. Due to industrial transformation and global competition, university students are increased being required to integrate their oral skills and their specialized knowledge for them to gain an edge in the job market and remain synchronized with the world as well. Notably, oral communication has become a backbone of most businessesRead MoreVerbal Communication And Oral Communication1281 Words   |  6 Pagesoral communication skill it is the verbal Communication, there is also a nonverbal communication linked to oral communication which is simply a person’s body language and eye contact and hand gestures. This could be important because it could express someone feeling’s as relaxed and confident this mean that if there have open arms this could means that there are open and nice person .On the other hand if we have a crossed arms they may-be angry. Last and the most important nonverbal skill is thatRead More Essential Workplace Skills Essay example1596 Words   |  7 PagesWorkplace Essential Skills While working or while looking for work there are certain skills sets that are universally important. No matter what job or career path you have chosen these skills make it easier to obtain your goals, whatever they may be. Workplace essential skills enable people at work to do the tasks required by their occupation, give them the basics to learn all other skills (job and life) and assist them to manage and adapt to the changing workplace environment. TheyRead MoreVerbal Communication Essay1182 Words   |  5 PagesCommunication is a Latin word which means ‘to share’. It is the sharing of information between different individuals. It includes the sharing of ideas, concepts, imaginations, behaviours and written content. Communication is simply defined as the transfer of information from one place to another. This transfer of information can be shown in different ways. Communication is sending and receiving information between two or more people. The person sending the message is referred to as the sender, whileRead MoreThe Importance Of Writing Skills And Oral Skills867 Words   |  4 PagesWriting Skills and Oral skills Mr. Price emphasized the importance of writing skills. He said that when you use it daily it is always important to sound professional. He also said what person would like to go through a document or email and see errors throughout. The textbook states, â€Å"many job listings mention the need for excellent oral and written communication† (Guffey and Loewy 3). Mr. Price told me that he had an ASM that worked for him in the past and he had terrible writing skills and oneRead More Communication Processes Used Within My Organization Essay1210 Words   |  5 PagesCommunication is important for the internal functioning of the organization and for interaction with the external environment. Communication is the transfer of information from a sender to a receiver, with the information being understood by the receiver. The communication process begins with the sender, who encodes an idea that is sent in oral, written, visual or some other form to the receiver. The receiver decodes th e message and gains and understanding of what the sender wants to communicateRead MoreEssay on Effective communication and its importance to supervision1585 Words   |  7 PagesEffective Communication and its Importance to Supervision Communication can often be overlooked and good communication skills can be easily assumed. If there is a lack of effective communication within an organization it can potentially affect every process. Every aspect and function of an organization relies on communication in some form. A supervisor must realize that only by ensuring effective communication can they have the proper expectations from their employees. Employees must receive adequateRead MoreThe Importance Of A Good Writing Skills806 Words   |  4 Pagesjob skills needed to perform a job task thoroughly and efficiently, while still maintaining the satisfaction of the clients as well as the organization. Oral communication is very important for an employee to possess because it allows the staff to interact more effectively, helps an individual give instructions and explanations clearly and accurately, and allows the individual to participate and engage in discussion among the staff and within the organization. Without goo d oral communication skillsRead MoreCommunication For The Field Of Accounting1122 Words   |  5 PagesCommunication for Auditors If asked what an accountant does, most people would respond with answers, such as dealing with numbers or being proficient in math. That may be true, but one main problem that is overlooked in this field is communication. Everybody communicates whether it is verbal, written, sign language, etc. It is a vital part of our world and plays an important role in accounting, which unfortunately is forgotten about. Graduates from colleges, who are seeking employment from accountingRead MoreCommunication Process1412 Words   |  6 PagesCommunication can best be summarized as the transmission of a message from a sender to a receiver in an understandable manner. The importance of effective communication is immeasurable in the world of business and in personal life. From a business perspective, effective communication is an absolute must, because it commonly accounts for the difference between success and failure or profit and loss. It has become clear that effective business communication is critical to the successful operation of

Thursday, May 7, 2020

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief

Ethics in the Mortgage Lending Business - 1566 Words

Ethics in the Mortgage Lending Business In America each person believes it is his or her right to own a home. Banks believe they should give each person the money to finance a home. Countrywide was at the forefront for many years in providing loans to consumers. Their ethics were placed into question when homeowners started losing homes after 2006. Bank of America intervened to assist on home loans affected. Their strong code of ethics, team values, and guiding principles ensured clients that their loans would be secured. Ethics During the time prior to the mortgage crisis, the economy was looking good to the mortgage brokers and lenders in the United States as well as new homeowners. After all, it is the ‘American Dream’ to own a†¦show more content†¦Bank of America s company philosophy is â€Å"we believe, very simply, that it is the actions of individuals working together that build strong communities ... and that business has an obligation to support those actions in the communities it serves† (Lewis). As stated on their company website overview, Bank of America is committed to creating meaningful change in the communities they serve through their philanthropic efforts, associate volunteerism, community development, and investing, support of the arts, and environmental initiatives (Bank of America, n.d.). Their neighborhood revitalization and stabilization programs were designed to aid, restore, and invigorate communities suffering from the growing number of foreclosed and vacant properties. They are further committed to cost-efficient and environmentally sustainable practices that benefit the global community. An example of this is the Bank of America Tower in New York City, one of the world s most environmentally-friendly skyscrapers. Bank of America expects and actively encourages its employees to act ethically, honor Bank of America’s code of ethics, care about one another, and value their communities. Core Values Bank of America core values were established to ensure the team of employees is serving their customers’ needs. The five core values are short but strong in words. Established by Bank of America to ensure confidence in consumer’s relation, the five values are:Show MoreRelatedThe Subprime Loan Blog Assignment And References Of Resources Researched Essay1390 Words   |  6 PagesStates starting somewhere around the middle of 2006. Gilbert (2011) state many levels of contributors participated in this mortgage lending crisis. Gilbert (2011) portends some of these included loan applicants, mortgage brokers, lenders, individual mortgage packagers, agencies that rate mortgages, investment brokers, and advisers, and purchasers of the collateralized mortgage obligations (Gilbert, 2011). People are advised to establish credit early in life to be able to buy homes and automobilesRead MoreCase Study : The Financial Crisis1084 Words   |  5 PagesEnterprise and Social Responsibility Renato Passos 21271774 Assignment 1 – Case Study: The Financial Crisis The purpose of this case study is to provide an introduction to business ethics. The first section of the assignment is an overview of the stakeholders. The second part is the description of an utilitarian perspective and how it should be applied on the case study. This is followed by the definition of the three ‘maxims’, clashes of rights and two normatives theories examined and appliedRead MoreWas the U.S. Federal Government’s 1932 Intervention in the Market for Home Ownership Desirable? How Did the Creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 Expand Homeownership and Shape1161 Words   |  5 PagesWas the U.S. federal government’s 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms? Yes, I do believe that the U.S. federal government’s 1932 intervention in the market for homeownership was desirable, not only for the government but also for potential home owners as well as those in construction, etc. PriorRead MoreDiscuss the Importance of Ethics in Business in Light of the Recent Global Financial Crisis (Gfc)1119 Words   |  5 Pageson the collapses on issues such as immoral practices, governance, regulations, enterprise ethics. Factors to consider with the collapse that lead to the financial crisis is the dangerous outcomes that financial companies were not foreseen in advanced of borrowing mortgages for the companies. The change of ethics through enterprises demonstrate how business approaches to ethics over the past years where ethics is seen in different perspectives. Lessons are learnt from financial failures in the lackRead MoreSubprime Lending1295 Words   |  6 PagesDefining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. AccordingRead MoreThe Transformation Of Housing Discrimination Toward African American1750 Words   |  7 Pagesdiscrimination especially from the pre-stage application lenders. Home Owners’ Loan Corporation (HOLC) and Fair Housing Administration (FHA) are the roots to create housing discrimination toward minority especially for African American; they help the mortgage lender to make excuses to deny the loan to African American because they do not meet the requirements. During 1928, there was a huge crisis in stock market and caused many banks close and people faced foreclosure. In order to respond the crisis,Read MoreCountrywide Financial : A Large Diversified Financial Service Provider1018 Words   |  5 Pagesfinancial service provider. They operate in five business segments, those being mortgage banking, banking, capital markets, insurance, and global operations. Countrywide was the largest market share among U.S. mortgage originators before unethical actions caused the downfall of the firm. Problems in Countrywide’s loan practices were evident. After the financial crisis of 2008 Countrywide was found to be a significant contributor t o the subprime mortgage debacle. Bank of America was in a position toRead MoreMoral Ethics And Values Based Dilemmas871 Words   |  4 PagesMoral ethics and values-based dilemmas are ethical principles that difficult to handle at a workplace when employees have to choose what is wrong and right according to their own ethics. An effective ethics program must complement the values of the organization along with the values in the law. Good ethical behavior for any business is always a fundamental to its success. The main key for business owners and managements is to ensure all employees understand all the ethics. This paper discusses howRead MoreTaking a Look at the Great Recession782 Words   |  3 Pages In 2007, the bursting of the housing bubble of the U.S was at its peak. The bursting resulted in plummeting of security values tied to the U.S. real estate pricing. The complex interplay of policies that provided easier lending of loans, overpricing of sub-prime mortgages, on a theoretical basis that the prices would continue to increase, and inadequate capital holdings from insurance companies and banks to back their financial commitments contributed to the bursting of the bubble (BoatrightRead MoreCountrywide Home Loans ( Countrywide Hl )1466 Words   |  6 PagesCountrywide Home Loans (Countrywide HL) provide, service, and sell mortgage loans and after-loan services such as collections and payment processing. As a leader in the mortgage industry, they provide these products and services to homeowners through prime and subprime mortgage loans and subsequently resell these loans to investors. In 2009, the United States (US) Treasury Department (Treasury) invested (i.e., US taxpayer -based funding) in Countrywide HL under the Treasury’s 2009 Troubled Asset Relief