...How Business Ethics Relates to Subprime Mortgage Market By Wanda Thibodeaux, eHow Contributor Many people have lost their homes as a result of unethical suprime mortgage practices. The ability to have a home of your own in the United States typically depends on your ability to repay a mortgage, since most Americans don't purchase their homes outright. Because not everyone has perfect credit, a section of the mortgage industry involves subprime loans. In the wake of the mortgage and foreclosure crisis that began in 2007, the ethics of those in the industry is under scrutiny. Other People Are Reading How Do Subprime Loans Affect Business Growth? Code of Ethics for Business in the Philippines Print this article Subprime Mortgage Definition A definition of subprime mortgage is necessary to understand the relationship between the industry and ethics. Subprime mortgages are mortgage loans lenders provide only to those whose credit disqualifies them from receiving the best (prime) interest rates a lender can offer. A subprime mortgage by definition means that lenders work with those with a lesser ability to pay. Roughly 25 percent of all mortgages are subprime, according to Thomas Kostigen of the Wall Street Journal's MarketWatch website. Fiduciary Duties and Ethical Problems Businesses typically operate under fiduciary duties, or obligations. These fall into two broad categories of loyalty and care. These duties essentially stipulate that a businessperson should...
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...Volume 1 3L’s Learning Services Business Communications Business Writing in the Mortgage Industry Business Communications Underwriting Training Manual ( 3L’s Training Services 12345 Main Street • Suite 100 Atlanta, GA 30303 Phone 404.555.0167 • Fax 404.555.0168 Table of Contents Introduction 1 Training-at-a-Glance 1 The Writing Process 2 Planning Business Messages 3-9 Defining Your Purpose 3-4 Understanding Your Audience 4-5 Gathering Information 6-7 Establishing a Good Relationship 8-9 Writing Business Messages 10-16 Organizing Your Message 10-13 Understanding the Need for Organization 14 Composing and Shaping Your Message 15-16 Answer Key 17-20 Lesson 2a 17 Lesson 2b 18 Lesson 2c 18-19 Lesson 3a 19-20 Introduction W elcome to the Underwriting Training Course. This course will help you to determine the relevance of effective business communications in your Underwriting job. Good communication skills are important in any business because these skills help the organization succeed. “Only through effective communication can you anticipate problems, make decisions, coordinate work flow, supervise others, develop relationships, and promote products and services” ( Thill and Bovee 4). While only a portion of the Underwriter’s...
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...HSBC’s Mortgage Lending Decisions and the Big Melt It isn’t often that the American financial system, and its world counterpart, has a near- death experience. The last time was the 1930s. Beginning in 2007 and extending through 2009, American and global financial systems failed, melted down, and were rescued only by concerted central bank interventions in all the major industrial countries. The United States directly invested about 1 trillion dollars in U. S. financial institutions, and guaran-teed an estimated $ 14 trillion dollars in private debt. The complete history of this period has not been written. Many causes, involving many different actors, have been identified. Some have likened the big melt to a “ perfect storm” where a number of storm systems just happened to combine to form a much larger, lethal storm. But one cause was the failure of decision- making models, both the model builders and the financial man-agers who relied on those models. One of the major players in this crisis was HSBC Holdings PLC, the third largest bank in the world based on market value, and the largest bank in Europe. In the financial meltdown of 2008— 2009, HSBC joined the other major money center banks in a collective failure. HSBC weathered the turmoil in the financial markets better than most of its rivals, mainly because it had profited from continuing growth in Asia, where it generates about 65 percent of its pretax profit. But the company’s stock prices have fallen by half from their...
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...The Thai rice mortgage scheme continues to receive a fair amount of media bashing even after completing its one-year anniversary on 7 October 2012. The debate on its impacts on Thailand and the rest of the world continues to take center stage at a majority of rice conferences in the region. The media and rice gurus have all ganged up on this scheme because nobody expected this from Thailand. This is the country that remained open for business during the 2007 rice crisis when India and Vietnam banned exports and provided some stability to a market that was chaotic and getting out of control. Despite all the negative publicity and criticism, Thai policymakers remain unruffled and publicly vow to continue with the program. Questions come to mind: Is this the only country with such a program? Does it really create so much uncertainty in the global rice market? To answer the first question, let me say that Thailand is not the only country with a price support program. As a matter of fact, most of the rice-growing countries in Asia have some form of price support program for farmers. These have different names and somewhat different operational mechanisms but all of them are designed to provide a guaranteed floor price for farmers. The only difference is that some countries religiously implement these programs and procure all the rice offered by farmers at the announced support price whereas others procure only the amount needed for a strategic reserve. The critical aspect of these...
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...Marketing Paper Introduction McBride Financial Services is a start-up regional mortgage lender based in Boise, Idaho (Apollo Group Inc., 2011). Their financial services specialize in conventional, Federal Housing Administration (FHA), and Department of Veteran Affairs (VA) loans for home purchasing and refinancing (Apollo Group Inc., 2011). The company intends to expand its operations and enter into the states of Idaho, Montana, Wyoming, North Dakota and South Dakota. McBride Financial Services will offer low cost mortgage services using leading edge technology (Apollo Group Inc., 2011). McBride Financial’s goal is to achieve financial break-even in their first six months of business and plan to become a profitable company within their first year of business. McBride Financial will leverage technology to maximize efficiencies and minimize the cost for customers and businesses when applying for and obtaining mortgages. McBride Financial services plans to obtain high customer satisfaction rates, reduce costs, expand and improve work perfomance. To achieve these goals, the firm needs to focus on providing effective and efficient mortgage services which will increase their success in the market. To do this, they need to...
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...MEMORANDUM OF LAW IN SUPPORT OF ADMISSION OF BUSINESS RECORDS AT TRIAL COMES NOW the Plaintiff, BANK by and through its undersigned counsel, and pursuant to Fla. Stat. 90.803(6) files this Memorandum of Law in Support of the Admission of its Business Records at the trial of this case held on March 7, 2012. MEMORANDUM OF LAW This is a mortgage foreclosure action which was tried on March 7, 2012. At the trial of this case, Plaintiff’s representative appeared as the Records Custodian and corporate representative of the Plaintiff, Bank. In seeking to introduce the admission of the Note, Mortgage, payment history, demand letter (Intent to Accelerate), and The Plaintiff’s Records Custodian testified under oath: a. That the records sought to be introduced were made at or near the time of the event; b. The records were made by or from information transmitted by a person with knowledge; c. The records were kept in the ordinary course of a regularly conducted business activity; d. And that it was a regular practice of Bank of America to make such a record. Pursuant to Fla. Stat. 90.803(6) this testimony is sufficient for the introduction of the Plaintiff’s records under the Business Records exception to the hearsay rule. See Freemon v. Deutsche Bank Trust Co., 46 So. 3d 1202 (4th DCA 2010) (affirming judgment for bank where affiant for bank in foreclosure action did not attest that she personally made all the entries for any particular mortgage, and that the default by defendant, and...
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...Why is corporate finance important to all manager? Corporate finance is important to all managers due to the priority capital has in a company. That is, without effective financial management, a company will be unable to develop products, get them to market and grow the business. Organizational forms a company may have as it evolves from start up to major corporation are: Sole Propietorship. Effectively a person “hangs a shingle” and becomes a business. It is subject to few government regulations and income is taxes as the proprietor’s personal income. However, its structure makes it difficult to generate growth capital, the proprietor has unlimited personal liability for company debts and the company only lives as long as the propietor. Partnership: This can take the form of a limited partnership and a general partnership where liability and control is divided along these lines. A limited liability partnership or limited liability company is structured to where all partners have limited liability with respect to the business’s liabilities. This works well for the partners but is an area of concern for the partnerships lenders, customers and suppliers. Corporation: This is created as a separate legal entity under law and as such is “separate and distinct” from its owners and managers. The advantages are is has unlimited life and can continue after the death of the owners. It also has easy transferability of ownership interest through transfer and sale of shares...
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...courts and fields, community pools, safe streets with biking lanes, and well maintained lawns and landscapes. The properties that are for sale need to be maintained by the sellers, even if they are bank owned, and new housing builds need to be put on hold until the ratio of homes for sale to total homes in the neighborhood improves. Following these steps will improve the community and raise the value of the homes to where they need to be so the homeowners do not have to face a decline of their community and property values. The problem is the Mission now contains home foreclosures and the current market value of homes are tens of thousands of dollars less than what the homeowners owe on their mortgages; the solution to this problem is the current homeowners need to pay their mortgages, work on home improvements, and maintain the neighborhood by keeping up with the facade of their property and follow the Home Owners Association covenants(McLaughlin, 2009). Since 2008 when the housing market experienced a decline, the Mission of Heartland Crossing was a community not unlike many across the United States that took a big hit and was negatively affected. Houses were being foreclosed, and the property values plummeted (McLaughlin, 2009). The neighborhoods have turned over so much that the homeowners who originally arranged and managed the current HOA are only representing 25% of the community. The other 75% are the new owners that had little or no input in the HOA covenants...
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...Organizational Impact Paper Hope Breaux 01/361 June 08, 2015 Bruce Hunter Organizational Impact Paper Organizations must strive to generate ways to maintain a competitive advantage in today’s ever changing society. The key to the success of any business involves innovation. Methods of innovation are critical for manufacturing goods and services to consumers. In an effort to become more profitable and keep a competitive edge, organizations must provide high quality products and services while keeping its operating expenses low. Therefore, the business must integrate innovation, design, and creativity into their business models to meet their objectives of offering quality products and services. This paper is intended to evaluate the impact of innovation, design, and creativity will have on the strategy of two businesses-the Shared Appreciation Mortgage Company and the Lotus Elise Company while considering their processes, products and services of both organizations. The Lotus Elise The development of the Lotus Seven was launched by Colin Chapman. Chapman had an idea of offering to the public a sports care with the qualities of a race car at an affordable price. The performance of the Lotus Seven would provide a unique driving experience that had light weight construction like a race car but not the use of a powerful and heavy engine. To achieve this goal, Chapman strategy was to “combine elements of knowledge, information, and creativity” to the Lotus Seven. (Stamm, 2008...
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...Acres, Ltd. V Charter Bank of Gainsville, Holly Hill purchased land from Rogers and Blythe giving them a promissory note and purchase money mortgage. The note stated, “this note with interest is secured by a mortgage on real estate, of even date herewith, made by the maker hereof in favor of the said payee, and shall be constructed and enforced according to laws of the State of Florida” (HOLLY HILL ACRES, LTD., a Limited Partnership, Appellant, v. CHARTER BANK OF GAINESVILLE, a Banking Corporation, et al., Appellees., 1975). The promissory note was issued to Rogers and Blythe, Rogers and Blythe later took a loan from Charter Bank, in order to secure the loan, they transferred the promissory note they had created with Holly Hill. After Holly Hill defaulted, Charter Bank sued to recover on Holly Hill’s promissory note, the question being if the reference to the mortgage in the note makes it non-negotiable. First, it would have to be determined if Charter Bank was a holder in due course, they do fit the books description “a holder who takes a negotiable instrument for value, in good faith, and without notice that is defective or overdue” (Cheeseman, 2010). Which according the case the lower court did agree with. Although the court on appeal found the note was non-negotiable because it incorporated the terms of the purchase money mortgage. Now the bank was not a holder in due course, therefore was subject to any defenses that Holly Hills made. Holly Hills brought up the defense...
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...Week 4 - Individual Assignment McBride Financial BSA 310 Week 4 - Individual Assignment McBride Financial Introduction The following paper briefly describes a marketing plan for McBride Financial Services. Head quartered in Boise, Idaho, McBride Financial Services is a well-known and distinguished as a leading mortgage lender in the five state area of Idaho, Montana, Wyoming, North and South Dakota. McBride Financial also has plans to expand business operations in these states. Loan specialties include; FHA, VA, and conventional for financing and refinancing home purchases (McBride Financial Services, 2011). Research Marketing to Undertake Exploratory marketing research in the proposed expansion areas would help to gather a source of preliminary potential customer base information that will help define problems and suggest hypotheses to follow through with (Armstrong & Kotler, 2011). Marketing researchers need to have certain information about their clientele to make the most effective method in its customer appeal tactic. I would recommend an easy approach that is low cost. A direct mailing package is sure to reach a large number of individuals in an established method of communications that delivers messages by a governmental department. The U.S. Postal Service regularly transports and delivers mail to all people in any given location. The cost of mailing a survey package is low. The population size of the audience is vast. These factors allow for the company to...
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...volume of mortgages in foreclosure or foreclosed with $3,216 million. In addition, it has $4,147 in mortgages past due. The second strength of Sun Trust is that the diversity policies and procedures that foster inclusiveness are critical to sustaining a strong competitive advantage. According to James M. Wells, III who is the SunTrust Chairman and CEO, diversity is an important issue to their clients and our teammates. Demographic trends clearly link long-term corporate success to an ability to operate in increasingly diverse markets. Diversity policies and procedures that foster inclusiveness are critical to sustaining a strong competitive advantage. He is challenging all SunTrust teammates to continue their success in ensuring an inclusive environment. In addition, SunTrust Banks, Inc. is also a diversified financial services holding company. SunTrust offers a wide range of financial services to retail, business and institutional clients. The company, through its principal subsidiary, SunTrust Bank, offers deposit, credit, trust, investment services, mortgage banking and brokerage services. In addition, the company provides investment banking, asset management, securities brokerage, equipment leasing and capital market services. It also offers its clients access to online banking, including automated telephone banking. SunTrust categorizes its business operations into six business segments, namely, Retail Banking, Diversified Commercial Banking, CRE, CIB, Mortgage, and W&IM...
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...Warm Up Exercises E2–1 What does it mean to say that individuals as a group are net suppliers of funds for financial institutions? For financial institutions, the key suppliers of funds and the key demanders of funds are individuals, businesses, and governments. The savings that individual consumers place in financial institutions provide these institutions with a large portion of their funds. Individuals not only supply funds to financial institutions but also demand funds from them in the form of loans. However, individuals as a group are the net suppliers for financial institutions: They save more money than they borrow. What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions? If individuals consumed more financial institutions would have less to invest in the economy. Lack of investment in the economy could lead to loss of jobs and much needed investment into businesses and infrastructure. E2–2 You are the chief financial officer (CFO) of Gaga Enterprises, an edgy fashion design firm. Your firm needs $10 million to expand production. How do you think the process of raising this money will vary if you raise it with the help of a financial institution versus raising it directly in the financial markets? As a CFO if I raise the money with the help of a financial institution I will be in a better position to get...
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...------------------------------------------------- Kenya School of Monetary Studies TERM PAPER DETERMINANTS OF MORTGAGE INTEREST RATES IN KENYA PREPARED BY: * MBURU LEONARD GATHUNGU HD336-040-0040-2012 * TAYARI AMOS MATANGA HD336-040-0043-2012 * KIBET JOSHUA HD336-040-0044-2012 SUBMITTED TO: * DR. NYAMONGO Abstract This paper provides an analysis of the determinants of mortgage rates in Kenya. The study was restricted to the period 2006-2012 quarterly data. During the analysis, mortgage rates were regressed against the CBR rate, inflation, bond rate and Household income for the period under study. The study utilized the Ordinary Least Squares method of econometric estimation to estimate the model. This method is chosen because of its simple and straightforward ability to show the linear relationship among Mortgage Rates, bond rates, inflation, Household income and CBR rate. The regression was done on the logs of the data variables because they change by rates other than certain amounts; this made it logical to take logs because the regression was to seek a linear relationship. From the results it can be concluded that bond rates and inflation had a negative influence on Mortgage rates in Kenya for the period under study. CBR rate and Household income depicted a positive influence on the same. This led to the conclusion from the study that CBR rate and Household income had direct influence on the mortgage rate than inflation and bond rates; other variables like loan to value ratio...
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...Prologue. Ira Glass So Adam, where are we? Adam Davidson I recorded this at the Ritz Carlton in Lower Manhattan. It's a black tie dinner. It was just a few weeks ago. Ira Glass And you, by the way, are NPR's international business and economics correspondent? Adam Davidson That's right. I was there for my job. They're giving out awards for all these financial securities, including the one that nearly brought down the global financial system in the whole sub-prime mortgage crisis. Dinner Mc At this time, I'd like to ask all of our stars to please assemble over here on the left side of the stage-- Jim Finkel This guy is a legend. He's a granddaddy of our industry. Adam Davidson I'm sitting at this dinner with Jim Finkel. He's kind of nervous, because he's up for CDO of the year for the CDO he created, Monterey. Now, the CDO, that's what we're talking about. That's the financial instrument that was central to this global credit crisis we're in. Ira Glass And they gave awards for this? These guys are giving each other awards for doing that? Adam Davidson Let me just say that they were aware that there's a certain irony, giving awards to the instrument that almost destroyed the world economy. And they did consider canceling this year. But it's been a really tough year. It's been really gloomy for them. Jim Finkel Honestly, I know this sounds-- I was really happy to see there were no major suicides, people weren't jumping off bridges, there weren't a lot of personal...
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