I. Define the problem:
1. The subprime lenders and the prime lenders.
2. The foreclosures rise.
3. The change of the secondary market.

II. List any outside concepts that can be applied:
1. Emergency Economic Stabilization Act.
2. Temporary Term Auction Facility.
3. Structured investment vehicles.

III. List relevant qualitative data:
1. “Subprime” loans increased from 63 lenders in 1993 to 209 in 2005.
2. The maximum loan for single-family homes was $417,000.
3. In 2005, 73% of mortgages classifies as having a high interest rate were sold.

IV. List relevant quantitative data:
1. The value of loans grew from about 1% of new mortgages in 1993 to 20% in 2006.
2. The FHA share dropped from 11% to 1.9%.
3. The average initial rate for subprime mortgages issued in 2006 was 8.5%.

V. Describe the results of your analysis:
1. Actually, I think subprime is a fact that we cannot avoid.
2. We need to find a way to reduce its bad effects.
3. People might become delinquent because they do not understand their financial fact.

VI. Describe alternative actions:
1. Giver borrower more time when they behind their debt.
2. Let them pay little less than they have to pay. Give the borrower more time to fit in.
3. The broker must have more sense of responsibility for borrowers when they want to buy a house.

VII. Describe your preferred action plan:
1. Giver borrower more time when they can’t pay the loan.
2. The secondary market must be more careful and strict for people who want to buy a house.
3. People should understand their own situation on whether or not they can pay their loan in the