Essay about Fannie Mae Case

In 2003, Freddie Mac was found to violate accounting rules for the purpose of smoothing earnings, and revised financial reports for the past three years. According to the restatement, Freddie intentionally understated

In 2007-2008 the US went into a recession, a financial crisis that has since then taken five years to rebuild. During that time millions of Americans were unemployed and faced many economic struggles which negatively impacted the real estate market causing a multitude of foreclosures. The reason for this recession was because there was no authority over banks and they were not being monitored properly. Banks were able to gamble with the finances of millions of people with no consequences towards their actions. The Dodd Frank Act Wall Street Reform and Consumer Protection Act of 2010 was put into place to make sure that nothing like this ever happened again; The Dodd Frank Act implemented and set laws into place to make sure that banks and financial

To be eligible for the VA Loan, Cooney says, a veteran must satisfy at least one of the following criteria:

As a result of these public scandals, it was a need in new more strict regulatory standards in terms of protecting investors from fraud activities of corporations.

Time is uncontrolled. As we grow older we discover different tactics and interest, most importantly we decide to create a future for our self. The ultimate American goal as an adolescent is to embrace the self-fulfilling responsibility of providing for our self and have a family of our own. Buying a home/ apartment or leasing a car, requires an extensive amount of not only income but sufficient credit to be approved. As young and unaware of how cruel this world could be, it is fairly easy to get manipulated into becoming a gullible victim of fraud, bankruptcy, or simply being stripped of one’s self-identity, known as predatory lending.

The Divide by Matt Taibbi In The Divide, it covers the major differences between the very high wealthy and the lower class. HSBC is the first thing that the book starts discussing. The company admitted to stealing around seven billion dollars.

The Home Owners Loan Corporation was established in 1933 by Franklin D. Roosevelt to protect homeowners from foreclosure. Its purpose was to increase housing investments after the Great Depression when the values of homes were halved and the efforts of Herbert Hoover failed. The Home Owners Loan Corporation was able to refinance mortgages with loans from private lenders with federal backing. This federal backing gave private lenders the confidence of security. In order to determine who would get loans the Home Owner Loan Corporation developed the neighborhood rating system which would categorize and discriminate the value of neighborhoods based on race, ethnicity, age, and religion. There were four classes used to determine whether a neighborhood was a good, fair, risky, or bad investment. The colors were respectively green, blue, yellow, and red. To be considered a good investment, homeowners had to be white, Christian, and live in new housing. A fair investment consisted of the same type of people but in older housing. A risky investment would consist of older housing and homeowners who were black, Jews, or foreigners. A bad investment was considered

Between the years 2000 and 2002 there were over a dozen corporate scandals involving unethical corporate governance practices. The allegations ranged from faulty revenue reporting and falsifying financial records, to the shredding and destruction of financial documents (Patsuris, 2002). Most notably, are the cases involving Enron and Arthur Andersen. The allegations of the Enron scandal went public in October 2001. They included, hiding debt and boosting profits to the tune of more than one billion dollars. They were also accused of bribing foreign governments to win contacts and manipulating both the California and Texas power markets (Patsuris, 2002). Following these allegations, Arthur Andersen was investigated for, allegedly,

More and more corporate scandals are happening in America. Why have these scandals just shown up in recent years? What causes these corporations to lie and be deceitful towards investors? Though once seen as legitimate, fair, honest, and respectable, corporations have arrived at a stage of greed and deception. This can be explained by a number of factors such as how the stock market works, the stock market boom, changing company practices, CEO benefits, and specific company examples.

Real estate finance in the modern community is changing the perspective of modern lending and purchases. It is a means to contemporary community’s ability to develop a foundation for discussing the nature and means of public spending and purchase. As a self-government sponsored agency, Federal National Mortgage Association (FNMA) also known as Fannie Mae works with the ultimate responsibility of lending and buying secondary mortgages in the market (Oesterle, 2010). It helps in the conservation of interest rates in the real estate business in the contemporary community. There is also the need for focusing on the impacts of the Fannie Mae on real estate finance. The approach of the Fannie Mae helps lenders to use the money gained from the secondary

Securitization history can be traced back to 18th century, but the first examples of mortgage-backed securities can be found in 19th century in United States, that are the farm railroad mortgage bonds of the 1860s. After the Great Depression, the government took several initiatives to increase the supply of funds for mortgages loans. Their aim was to support the primary market first, and then the secondary market. In 1934, the Housing Act was enacted and FHA (the Federal Housing Administration) is created by the U.S. federal government. The FHA developed the fixed-rate mortgage, which is an alternative of balloon payment mortgage. In 1938, the federal government also created Fannie Mae, a government-sponsored corporation, in order to create a liquid secondary market of mortgages.

"The Wall Street Journal" found that the current bond yields were 0.20. These bonds are issued by the US government. In view of the fact that Fannie Mae Securities is a mortgage-backed securities issued by FNMA. We have observed that Fannie Mae and Treasury yields are somewhat different because FNMA Personal Securities and Treasury bonds are issued by the US government. Therefore, we note that there should be some difference between the two rates. As a result, Fannie Mae gets money from investors and financial institutions and sells their mortgages.

During the late 1990s and early 2000s, several companies like Enron, WorldCom, Adelphia, Global Crossing and Tyco, just to name a few, were embroiled in corporate fraud, greed and manipulation. These businesses were intentionally deceiving the public, their investors and even their employees. Company executives were hiding company expenses and liabilities, misreporting company finances in order to increase stock prices. External audit agencies that were hired to examine and certify financial statements for accuracy, were basically

Using the chapters on language and emotions to help frame your answer, suggest two ways that Ken could open this conversation more productively. For instance, clearly expressing his emotions and using “I” language.

FannieMae is a company that makes capital by lending money to people who need mortgages and by borrowing money at low interest rates. FannieMae is able to make money in any kind of economy. During times of low interest rates they make money on people who bought fixed rate mortgages at a time of high interest rates. They also have a hard making money during this time because their marginal percentage is smaller and they make less of a profit. During times of high interest rates, they lose money on people who bought fixed rate mortgages at low interest rates. They also make a lot of assets during this time because they borrow from the federal reserve or banks at lower interest rates and lend