Countrywide's Logic

Even though Countrywide stopped offering subprime loans 4 months ago, the company is still in the forefront of the subprime mortgage lending and foreclosure crisis.

Pay options were also available allowing the borrowers to choose lower payments and the balance of what you should pay and what you actually paid was added to the loan to have a negative amortization. The introductory low rates were called Teaser Rates. The goal was to make home ownership more affordable for more people. Michael Francis and other brokers in Wall Street knew that some of these loans are bad loans but they didn’t cared because they transferred all these loans to whoever wanted to buy them such as pension funds. They are just the intermediary or the pipeline. These pension funds could only buy AAA mortgage loan. The investors wanted to sell their loans to the pension funds but they needed to be rated AAA by these agencies. Their job was to evaluate the risk of the securities. What was the ethical issue here with the agencies? The riskier BBB looked as good as the triple AAA and they looked much safer than they used to be and they started to look more like a AAA security. So AAA requirement got lower as the market got smart. Moodies, S&P, and Fitch are the three rating agencies. They didn’t give price but based on their ratings they got priced. The suggestion is that these agencies would come with the investment bankers. The business was getting more competitive so you just wanted to get more business or more business than the other agencies. When Anne Arundel was asked if standards lower she

A similar competitive irrationality happened within the larger banks. Mike Francis said, “I wish we had never done it. Unfortunately we did it because everybody else was doing it”. Tonko Gast also commented “We were a little early in '05 by not wanting to do those deals. And people were laughing at us”. Society reinforces people to appear consistent, and they don’t want to admit failure (Bazerman & Neale, 1992). Therefore no one of them stopped trading the falsified loans until they had to pay for the cost when the crisis came. Just like the 20 dollars auction paradigm, “a bidder may feel that one more bid may get the other person to quit. If both bidders feel this way, the result can be catastrophic.” (Bazerman & Neale, 1992).

When the real estate market hit rock bottom, trust was broken between the lenders and

They never realized that they were using their home as collateral or that the documents were applications to secure equity loans, line of credits, and modifications. It was proven that many could not read or write. Nevertheless, the banks were able to move forward with the foreclosures and the victims lost their home to either the bank or the contractors. Despite the clear demonstration of criminal activity, no arrests were made and very few consequences directed toward those licensed to uphold the highest standards and to protect the consumer. The fraud and abuse was so widespread throughout the entire real estate industry. Mortgage and real estate brokers, roofers, contractors, surveyors, inspectors, and bankers; there was definitely enough blame to go around.

Instead of receiving reasonable interest rates or regular loans, they were redirected to apply for subprime loans. Why would the brokers do this? Ironically, there are no laws against a mortgage broker asking a borrower’s race, or a borrower refusing to select race identity on a loan application. As a matter of fact, if a borrower refuses to select their ethnicity on an application; brokers are inclined to guess the borrower’s race to be in compliance with the Home Mortgage Disclosure Act. This is a requirement to ensure mortgage lenders are not discriminating based on race. Hence, mortgage lenders have the right to guess a borrower’s race based on the physical color of skin.

However, when they finally did find a house it was run down and would not be considered a safe area for the family and children. Also, according to this families financial problem, they can be classified as lower class. Although the parents were bright and well educated, they lacked the enthusiasm to work and provide for the family. If given help, this family could have had close to a normal life with government assistance. If the family made an effort to provide for their family, they could have been approved for snap, Medicaid and TANF.

Often, when someone can’t afford housing prices, they will apply for low-income housing prices that will

Countrywide’s tactics often led borrowers to expensive and sometimes unfavorable loans that resulted in richer commissions for Countrywide’s sales forces, fees to company affiliates providing services on the loans, and a roaring stock price that made Countrywide executives among the highest paid in America. Countrywide’s entire operation, from its computer system to its incentive pay structure and financing arrangements, was intended to wring maximum profits out of the mortgage lending boom no matter what it cost borrowers (Morgenson, 2007).

Student athletes have two jobs to do when they are in college, one is to be an overall great student in the classroom, by maintaining a good grade point average, studying hard for any upcoming exams and pay close attention during class. Their other job is being a phenomenal player in the sport that they play. To do this you need to, work hard and attend every practice, study your playbook or any type of strategy, and to compete at the highest level. This is a lot to handle for a college student. There are over 460,000 student athletes in all of the divisions in the NCAA today. With this large number of student athletes it seems

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures and short sales, as they could no longer afford the mortgage payments on their homes. The United States entered a recession and homeownership no longer appeared to be a feasible goal as many questioned whether the country could continue to support a middle-class. Former home owners became renters and in some cases homeless as the American Dream was delayed with no foreseeable return. While the future of the economy looked bleak, conditions gradually improved. American citizens regained their jobs, the United States government bailed out the banking industry, and regulations were put in place to deter such events as the mortgage crash from ever taking place again. The path to homeowner ship has been forever altered, as loans in general are now more difficult to acquire and can be accompanied by a substantial down payment.

It is very difficult to get a loan from a commercial bank for first-time homebuyers, and for existing homeowners who are in the process of foreclosure. The loan modification programs that are available now are bandages for a much bigger problem, the problem lies in the underlying banking system practices, polices and traditional way of doing business.

A good text should be crafted in such a way that it commands a certain extent of rhetorical force in a bid to acquire the expected influence on the intended audience. This force exudes from the sensitivity of the issues addressed in a text, the language used, the credibility of the facts used, and the ability of the author to present the ideas in a manner that passes the test of time. The four texts reviewed in this essay manifest great rhetorical force in the way they handle the concept of postcolonialism. The varying authors used different methods to reinforce their views by appealing to various groups of readers and contributors in postcolonial discussions.

There are many different stages of reproduction, and changes that happen in a woman when she becomes pregnant. It may be difficult for some people to comprehend what really goes on in the woman's body while this biological process takes place. Our topic today will help those who have a hard time comprehending the changes a fetus goes through during a pregnancy.

With all of the incentives and mortgage products given so easily to people that couldn’t afford the high prices (including interest rates), many people defaulted on their first mortgages because they were no longer were able to receive the profit from the homes they first intended to flip. “During the first quarter of 2008, nearly 9% of all mortgage holders were delinquent or in foreclosure, the highest rate since recordkeeping began in 1979. Foreclosure filings more than