Journey To Homeowning

Journey To Homeowning
This way to a home of your own
It's your first time buying a home, and you've got questions. This guide breaks down what is
probably the most important purchase of your life into five manageable stages.
The journey to homeownership can have its ups and downs. But for most, the ride is well worth it.
According to the Bank of America 2017 Homebuyer Insights Report, nearly three–quarters of first–
time buyers say their home has had a positive, long–term impact on their finances. Hop on to learn
the process inside and out–from creating a budget to prequalifying for a mortgage to closing the loan
on a home of your own.
FIRST–TIME HOMEBUYERS
GET STARTED
Before you ride, calculate what you can afford.
Stage 1: Prepare your finances–before ... Show more content on Helpwriting.net ...
Keep in mind prequalification is not a commitment to lend. You will need to submit additional
information for review and approval. Still, having this letter in hand when you make an offer shows
sellers you are serious and gives you some negotiating leverage.
Key guidance:
Find out if you should get a fixed– or adjustable–rate loan.
Learn about nontraditional and government–insured loan options.
Know more about the importance of prequalifying.
Stage 3: Zoom in on your property and get your offer accepted
Now that you know what you qualify for, the fun of looking for homes with your real estate agent
can begin. Save time and emotional energy by narrowing your search to homes that fit your financial
criteria. Preview property online, and have your real estate agent show you only listings that are
right for you. When you find a match, your agent can help you make an intelligent, informed offer.
If it is accepted, a purchase contract is drawn and typically contains a good–faith deposit ("earnest
money") that you are willing to put in escrow to show your commitment.
Look for programs to help lower upfront costs on the Down Payment Resource Center from Bank of

America.
Key guidance:
Avoid 6 common mistakes of prospective homeowners.
Know the extra costs involved in buying a house, from insurance to inspection.
Learn how mortgage points can lower your monthly payments.
Look for
... Get more on HelpWriting.net ...

Bank Of Americ An American Global Banking Corporation
Bank of America is an American global banking corporation which just provides banking and
financial services to individuals and customers. The bank has covers each area, such as serving
individuals, providing financial management products and services. Also it covers a larger area and
operates in a lot of banking platforms. A change of retailing banking services is provided by the
bank to its customers and individuals, (Jorion, 2009). Some of the lending practices at the Bank of
America are going through the account, providing credit card facilities, savings account service.
Going through the account allows for the deposits of various funds through phones and other
technology and monthly waivers for the students who are able and many others suitable (Elsilä,
2015). Providing credit card facilities allow of the cash back rewards and low interests rewards,
traveling and many other options to create rewards. It provides individuals enough convenience.
Saving account services is basically delivers easy and instant opening of accounts and managing the
accounts through many online banks processes. Still, there are many other services as well which
includes home loans, retirement specific account and many more. These services aim to provide the
best user experience that the customers will gain from the Bank of America. (Bankofamerica.com,
2016)
Credit risk measurement also named as CRM in banking industry, can be noticed in two different
standpoints in the bank. It can be the

The Worst of Economic Times in the Great Recession
The Great Recession is possibly the worst economic times since the Great Depression after World
War Two. Freddie Mac and Fannie Mae were two financial institutions that played a major role in
the uprising of housing prices. Bundling home loans with different ratings together helped to get a
good deal. There was money to be made with investors. When greed took over and good ratings
were given to people for loans that they could never pay them back, there then was a shift in
direction. The housing market started to fall. Houses were too expensive, and people could not
afford it. Foreclosures were happening all over the country, which lowered the worth of the houses
in neighborhoods that were paid up to date where families still lived. The Federal Government had
to step in because the housing bubble busted, and then financial institutions and banks went
bankrupt. Credit scores have a huge impact when it comes to loans, mortgages, and anything else
that requires a credit check. The higher the credit score means the better chance the loan will get
paid back. The lower the credit score the less of a chance that someone will get a loan because they
are more at a risk of not paying it back and defaulting on the loan. Fannie Mae and Freddie Mac
recommended the FICO score for use in mortgage lending in 1995. That would have helped people
get a mortgage that may not have before. It would also help not let people with low credit scores to
get a mortgage because they would not be

The Foreclosure Crisis Swept The Nation Affecting People...
The foreclosure crisis swept the nation affecting people of all walks of life. It may have had its
deepest reaching impact on first–time home owners. I live this crisis each month when the mortgage
comes due and we barely make our ends meet. As a first–time home owner, I was blindsided by
varying mortgage payments. Furthermore, the processes in place that were designed to allow relief,
only provided temporary respite from the stresses of home ownership. The stories among
homeowners are likely very similar and the outcomes equally alike. The mortgage process is
daunting and has ended in heartache and disappointment, leaving potential home owners to pursue
alternate home–ownershipoptions.
The Keeping Homes Affordable option is only as good ... Show more content on Helpwriting.net ...
It remains unaddressed and therefore unresolved.
Another option for potential homeowners and those bouncing back from these terrible experiences is
LEHC's. These Limited Equity Housing Cooperatives are corporations in which residents buy a
low–cost share of the ownership of a building but are limited to the return from resale of the housing
(Graves). These are residences where the tenants buy membership into the housing cooperative
association and consent to a property occupancy agreement. It is a non–profit rental or leasing
agreement, and most of the income results from the "rent" that is paid by its residents. These coops
are available at several income levels. Although there is no real point in surplus revenue, some
additional revenue can be set aside to replace assets, cover repair and maintenance costs.
Community Land Trusts are non–profit options that enable participants to own the physical structure
of their home but not the land. It is the land that the home is on that owners lease, similar to that of a
mobile home community in many cases. Mobile home owners can rent lot space to settle their
mobile homes onto. If the owners decide to move and sell their homes, they would usually be
required to sell their home to another income eligible buyer below market value (Graves). Its appeal
is it balances community affordability, responsibility, and flexibility to its residents. The community
can also sustain gardens, build community buildings,

Predatory Lending
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Becoming a victim of predatory leading can be achieved many different ways. Things such as
targeting college students to apply for credit cards, convincing you it's acceptable to lie or slightly
change information on loan applications, or even targeting people who are already in debt are just a
few examples of predatory lending. Predatory lending is the practice of banks targeting individuals
with low incomes, charges them outrageous loans with knowledge that the individual will have no
way to fully pay what was borrowed. There is a broad definition within different jurisdictions, most
times a case where a bank that used a form of predatory lending that, while it may ... Show more
content on Helpwriting.net ...
Fees and rates being charged to the borrower that are excessive compared to the rates a person
would have received from a different loaner. Victims become such because normally they do not
take the time to shop around and look at competitors rates. "Payment–Myopic" normally refers to
the unknowledgeable borrower choosing the type of payment method. If the soon to be home owner
does not know the true value of their home, they may get charges higher interest rates that may push
them into high unnecessary monthly payments.
Regulations to predatory lending completely comes down to where you live. A lender has numerous
loop holes that they can easily find. They have shown to do this in multiple cases including the
B.O.A. case in 2012 and even in more recent, unfinished cases. Although this form of lending can be
agreed apron by what most people would call stealing, there are no solid laws to kept agencies from
targeting minorities.
McBride, John. "Is There a Cause of Action for Predatory Lending?" 17 May 2012. Web. .
Lopez, Linette. "Bank of America/Countrywide To Pay $335 Million For Predatory Lending
Practices Against African American And Latino Borrowers." 21 December 2011. Web.

Essay On Regulating American Banks
Regulating American Banks An article appearing in the Finance and Economics section of The
Economist print edition with the headline ''Turn of the wheel'' discusses the Treasury proposing
measures of cutting red tape. The article notes after President Trump assumed office, he vowed to
restructure the elephantine law which had recast financial regulation following the 2007–08 crisis.
Thus, he asked Steven Mnuchin, the Treasury secretary to measure all the rules of America against 7
broad principles, bail–outs prevention by taxpayers as well as instituting more efficient regulations
inclusive. Mnuchin provided a report on banks where he proposed installments to cover capital
markets, asset, and insurance management together with financial ... Show more content on
Helpwriting.net ...
The rationale behind this is that high–risk weights associated with commercial property loans and
mortgage serving assets have led to quitting business by small banks ("Regulating America's banks",
2017). Based on the issue discussed in this article whereby households are making fewer borrowings
due to much regulations imposed by the Dodd–Frank act `s Consumer Financial Protection Bureau
making borrowing stringent due to many requirements and higher lending rates that make the
households to shun from taking mortgage loans, it is imperative to make changes to the national
budget so as to stimulate lending. Accordingly, the national budget should cut taxation on a financial
institution, especially on the mortgage. This will, in turn, compel the financial institutions to also
lower their lending rates to their customers. This will stimulate more borrowing from the households
who will, in turn, invest their borrowed amount in viable projects that will stimulate the economic
growth. Nonetheless, this lending ought to be monitored so that the money borrowed is invested in
worthy projects that can produce significant returns and also to avoid the effect of inflation. Besides,
the national budget should cut down on taxes charged on construction materials. This will enable the
investors to invest in real estate by either using their savings or by borrowing from financial
institutions. The aggregate effect will be economic growth and increased Gross Domestic Product.
The

The Big Short And Twilight Of The Elites
The Big Short and Twilight of the Elites were intriguing stories. It opened my eyes to see different
views about American Institutions. Specifically, the failures that occurred throughout the film and
the book. In The Big Short it showed how the recession effected all levels of the system and not just
the middle class, which is the majority of America. Throughout Twilight of the Elites it discusses the
failures within a variety of institutions.
The Big Short is a movie that discusses the housing market crash in 2008. As you may know, the
banks, the mortgage brokers, and the consumers were all affected by this collapse. On each level of
the system, there were things that went wrong and that could have been changed or could have
prevented the failure of the housing market. Before the 1970's banking was not a business that you
went into to make money and it remained that way until Louis Ranieri came around. Louis Ranieri
had one idea that changed the housing market forever. His plan was to have a mortgage back
security. Mortgage back securities are an asset based security backed by a mortgage. For example, if
you use your mortgage to start a business, your business is backed by that mortgage. The average
mortgage loan has a fixed rate loan and takes thirty years to pay off, however, when bundling them
all together it's an opportunity to make greater profits. Mr. Ranieri believed these would still be less
risky because people are more likely to pay their mortgages off.

US Bank Corp. Analysis
Finance 421
US Bank Corp. Analysis
Analysis of the financial position of US Bank
[Type the author name]
12/1/2012
US Bank Corporation (USB) is a commercial bank which offers customers checking accounts,
savings accounts, and time services contracts. The bank trades in financial securities but its main
source of revenue is various types of loans. These loans range from residential and commercial real
estate loans, industry loans, and other individual loans. In this analysis the overall strength of US
Bank will be evaluated and will be compared with two similar financial institutions. The two
institutions chosen for comparison are Wells Fargo (WFC) and Bank of America (BAC). To evaluate
the overall strength the major ... Show more content on Helpwriting.net ...
The largest liability for the three financial institutions are interest bearing deposits. Wells Fargo
holds the largest proportion at 50.14% followed by US Bank at 47.70% and then Bank of America at
32.40%. US Bank holds and Wells Fargo have similar proportions of this liability. While these
liabilities accrue interest the banks do have to expect frequent cash outflows from this. The three
banks third largest liabilities are noninterest–bearing deposits with US Bank having the largest
proportion of 23.36%, followed by Wells Fargo at 21.93% and Bank of America at 18.97%. These
proportions seems relatively similar to each other but with US Bank's higher proportion they should
be weary. These noninterest bearing accounts are likely to be checking outs and while they do not
accrue interest you can expect frequent withdrawals from customers which should keep them weary
of loaning out too much money. Finally all three banks have listed other borrowed money as their
third largest liabilities. This includes mortgage indebtedness and obligations under capitalized
leases. Bank of America has the largest proportion of 14.24%. Next is US Bank with 13.66% and
then Wells Fargo with 9.62%. These proportions also seem quite similar too each other.
Interest Revenue, last Quarter
US Bank largest source of revenue is

The Collapse of Bank of America: Causes, Effects, and...
The Collapse of Bank of America: The largest banking institution in the United States, Bank of
America, has been characterized with numerous controversies in the recent past. While the
institution only got bigger since the financial crisis and government intervention through bailouts,
Bank of America headed towards collapse. In 2011, Bank of America experienced several protests
of its branches by various groups like National People's Action, US Uncut and other progressive
activists (Jaffe par, 1). These protests were fueled by the groups' anger at Bank of America's tax
dodging, huge bonuses that were paid after government bailouts, foreclosures, and other harmful
practices. These protests contributed to increased concerns on whether the too–big–to–fail behemoth
would really collapse.
Bank of America's History: The origin of Bank of America can be traced back to 1904 when it was
founded by Amadeo Giannini in San Francisco as the Bank of Italy ("A.P. Giannini" par, 3). During
its initial years, the financial institution served the needs of several immigrants settling in America
in that period. Bank of Italy was beneficial to these immigrants because it provided services they
were denied by the existing American banks that were extremely aristocratic and only served the
wealthiest. As a son of immigrants, Giannini loaned to immigrants through the financial institution
while other banking firms refused to do so.
Consequently, he developed a huge Western banking empire

Countrywide Financial Crisis
Countrywide Financial, co–founded in 1969 by Angelo Mozilo and David Loeb became the largest
provider of home loans in the U.S., where one out of every six loans originated with Countrywide
(Olster, 2010). Countrywide found its niche providing loans to minorities, those with less than
stellar credit, and by issuing loans to low income families. Numerous families, unable to achieve the
American dream, had the capability of becoming home owners, because Countrywide diminished
the barriers preventing this group from obtaining home ownership (Ferrell, Fraedrich, & Ferrell,
2013). "House America" and "We House America" were two programs created at Countrywide to
assist low–income and minority individuals with home ownership by offering lower ... Show more
Bank of America, under the impression they had made an excellent business decision was unaware
of the totality involving Countrywide's loan practices. Only a small group of Bank of America's
employees were involved in the assessment of Countrywide's books and operations techniques, yet
had no input in the acquisition (Rothacker, 2014). Only a matter of time, Bank of America would
realize the magnitude of legal issues it had acquired from Countrywide. However, Bank of America,
which was much larger, had the ability to manage the negative media and confront the rising legal
troubles better than Countrywide. Ironically, in 2001, Bank of America discontinued subprime
mortgages and higher priced loans to riskier consumers (Rothacker,

The Housing Crisis Of 2008
For decades Americans couldn't help but rejoice when they were able to own their very own home.
The image of holding the keys and to quickly step foot into their home provided Americans with
visons of prosperity. Many Americans whether poor, middle–class, or wealthy could now dream of
endless possibilities when owning their very own home, as well as embracing a sense of
accomplishment. These accomplishments or feelings were great at first; however, the realty for
some Americans was that behind the glitz and glamor was a ticking time bomb. Now imagine the
United States of America flourishing in the real estate sector and the US economy from Wall Street
to individuals benefiting from the booming housing market. However, while all this was ... Show
more content on Helpwriting.net ...
It is necessary to first explain what Thomas Sowell an economics scholar says "The cast of
characters" (Sowell 2). The nature of the housing market makeup is much more than just a bank
issuing loans. The importance is to understand what lies behind the scene and from there
comprehend the causes of the housing crisis. The Federal Reserve System in general regulates banks
across the county. The Federal Reserve also has power to "take action which affect interest rates and
the money supply" (Sowell 2). The Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation are "two government–created, but privately owned, profit–making
enterprises that buy mortgages from banks" (Sowell 3). The Federal National Mortgage Association
is also known as Fannie Mae, and the Federal Home Loan Mortgage Corporation is also known as
Freddie Mac. These Associations as stated above buy loans from banks, which ultimately eliminates
the banks wait for 30 years of monthly payments. According to book The Housing Boom and Bust
"Fannie Mae and Freddie Mac purchased more than one–third of all the mortgages in the nation that
were resold by the original lenders." The U.S. Department of Housing and Urban Development is
another major entity in the real estate housing market. The U.S. Department of Housing and Urban
Development is also known as (HUD) and "exercises authority over Fannie Mae and Freddie Mac,

Scholarship Essay
Scholarship Essay
The foreclosure crisis is the second major financial dilemma of the twenty–first century. To solve
this, the roots of the problem need to be dug up and exposed followed by replanting with an
appropriately improved regulatory system to help build stronger roots for the future. It seems that
the free market system can't be free anymore given its intertwining roots extend way beyond
domestic to international financial systems. There are two fundamental causes to the latest credit
crisis: 1) poor quality securitized mortgages and 2) insufficient underwriting for credit poor
borrowers. Secondary (downstream) problems making the financial crisis more complex include
underemployment and business failures. Many banks, ... Show more content on Helpwriting.net ...
Republicans are the pioneers of fiscal conservatism in government, and desire above all else a free
market even with the enormous risk of financial collapse. The country already is in increasing debt
and the money needed to fix a free economy does not exist. And therein lies the problem: America
has only been as successful as it has proven to be because of invention and innovation in technology
and the structure of the economy itself. To restrict innovation would weaken the economy, but
keeping it too open led to the current fiasco. Finding middle ground is the only way to go. America
is not alone with this problem, it needs every country's help to recuperate and rebuild.
The government's attempt to stem the tide of foreclosures and arrest the incredible fall in home
prices have been, in a word, pathetic. One proposal suggested was for banks to offer low 4%
mortgages –– a step in the right direction. But in extending support to buyers of homes, it
completely ignores the problems of millions of families that already have mortgages. As a result, it
does little to halt the surge in foreclosures. With more home owners likely to default this year, the
situation is far from recovery in spite of a wall street surge since March of this year. The new rates,
and lower monthly payments, would be especially helpful for homeowners with negative equity
(they owe more on their mortgages than their homes are worth). Such underwater borrowers, prime
candidates for

Countywide Unethical
In the early 2000 Countywide was the largest provider of home loans in the United States, with one
in six loans in the U.S. originating with Countywide. Countywide also offered loan closing, capital
market, insurance, and banking services to its clients. Countywide had also diversified into the
securities market by 1970. In 1992 they had created a program called "House America" that enabled
more consumers to qualify for home loans, while paying smaller down payments. In 2003 they
proposed the "We House America" program with the goal of providing $1 trillion in home loans to
low–income and minority borrows by 2010. The company had a great reputation, it has delivered its
investors a 23,000 percent return, which exceeded the returns of companies like Washington Mutual,
Walmart, and Warren Buffett's Berkshire Hathaway by 2003. Unfortunately, the company's reliance
on a leading practice that was put into place to aide low–income individuals, also helped to
contribute to its downfall (Fraedrich, Ferrell, & Jackson, 2011).
In the June 2008 issue of The Guardian, Andrew Clark stated that Countrywide Financial one of
American's biggest sub–prime mortgage ... Show more content on Helpwriting.net ...
According to Anne Federwisch, ethical issues in the financial services industry affect everyone,
because even if you don't work in the field, you are a consumer of the service. She further stated that
the public seems to believe that the financial services sector is more unethical than any other areas
of business. She stated that James A. Mitchell believes that the misperception persists for several
reasons, mainly because the financial industry is so large, and includes banks, securities firms,
insurance companies, mutual fund organizations, investment banks, pension funds, and mortgage
lenders

OSHA´s Whistleblower Protection Program Essay examples
As a government investigator for this case I do support the Department of Labor's decision in this
case.
OSHA implemented the whistleblower provisions of the Sarbanes–Oxley Act and 20 other statutes
protecting employees who report violations of various airline, commercial motor carrier, consumer
product, environmental, financial reform, food safety, health care reform, nuclear, pipeline, public
transportation agency, railroad and maritime laws. Under these laws passed by Congress, employers
are forbidden from retaliating against employees who raise various protected concerns or provide
protected information to the employer or to the government. Employees who believe that they have
been retaliated against for engaging in protected conduct ... Show more content on Helpwriting.net
...
In February 2008, Foster had discovered equally shocking activities in investigations in Miami,
Chicago, Cincinnati, San Diego, Las Vegas and Los Angeles.
The report from the Labor Department, mentioned that after the Boston investigation, Foster
continued to report fraud to internal sources, including several executives such as a manager director
and a vice president and at the end of 2007 she warned executives the number of fraud incidents in
subprime lending "may be much higher" than reported. Other findings discovered by Foster
included employees who reported or had tried to report fraud at both subprime and prime lending
units who "suffered persistent retaliation" (Benoit & Hudson, 2011).
Blaylockon (2011) suggested that instead of accepting a payment of almost $228,000 for her silence,
Foster wanted to ensure the corrupt practices at Countrywide were exposed and that the wrongdoers
were held accountable. In September 2011, OSHA agreed that Foster had been retaliated against in
violation of the employee protection provision of the Sarbanes Oxley Corporate and Criminal Fraud
Accountability Act of 2002. The Department of Labor ordered her a payment of $930,000 in
damages, which included back wages, interest, compensatory damages and attorney fees.
Dr. David Michaels, the OSHA's Assistant Secretary mentioned that Bank of America used illegal
retaliatory tactics

The Financial Crisis Of 2007-2008
One of the most devastating aspects of the financial crisis of 2007–2008 to middle–class America
was the crash of the housing market. Millions of Americans were affected and faced foreclosures on
homes that were purchased with subprime mortgages. The impact of these mortgages varied state to
state. Nevada, one of the countries leading tourist destinations, led the market in foreclosure rates
and housing appraisal drops. The government 's false sense of security in regards to the economy
and the predatory lending practices of big banks such as Bank of America, JP Morgan and Wells
Fargo, impacted the housing market negatively and ultimately led to millions of people in debt and
without a home.
Keywords: Bank of America, subprime mortgage–lending, financial crisis 2007–2008
The Financial Crises of 2007/2008:
A Look At Subprime Mortgages and the Big Banks' Role In the State of Nevada
Since the financial crises that the United States has endured since 2007, there are very few people, if
any, that can say they have not been affected by the economy. Middle class Americans have born the
brunt of this crisis. Millions of Americans have lost jobs, grown further into debt, and have lost their
homes. The exorbitant amount of home foreclosures is now officially referred to as the housing
crisis and there are states that have been influenced at a staggering rate. The state of Nevada has
seen the highest foreclosure rate of any state in the country for years. In fact,

Countrywide Financial Subprime Meltdown Ethics Mandi Hash
Countrywide Financial: Subprime Meltdown Ethics
Countrywide Financial: Subprime Meltdown Ethics
Mandi Hash
Acct 430 81E – Krupka, Joseph
Abstract
"Not long ago, Countrywide Financial seemed to have everything going for it. Cofounded by
Angelo Mozilo in 1969, by the early 2000s it had become the largest provider of home loans in the
United States. At that time one in six U.S. loans originated with Countrywide. In 1993 its loan
transactions reached the $1 trillion mark. Additionally, it was the primary provider of home loans to
minorities in the United States and had lowered the barriers of homeownership for lower–income
individuals. Countrywide also offered loan closing, capital market, insurance, and banking services
to its ... Show more content on Helpwriting.net ...
Many of the baby boomers started selling their houses to fund their retirement. Disposable income
was becoming nonexistent. Despite all of these warning signs financial institutions kept on making
risky loans, such as the subprime loans, and builders kept on building more houses for profit. The
end result was a surplus of housing and no consumers able to afford it. Banks were forced to start
foreclosing on houses when the consumers stopped paying their mortgages. Foreclosure rates were
skyrocketing, causing investors and borrowers to feel the full effect of the risks of the subprime
loans. The surmounting number of mortgage defaults and investors pulling out of their mortgage–
backed securities caused a string of bank and financial institution failures. These failures were felt
world–wide, as billions of dollars were lost. Many of the larger financial institutions required
government assistance to stay afloat. In just over a year Countrywide depreciated and absorbed $21
billion in losses. Eight billion in subprime loans has a seven percent delinquency rate, as well as the
foreclosure rate on the loans doubled. Countrywide laid off twenty percent of its employees.
When Is Making A Subprime Loan An Ethical Thing To Do?
When making a subprime loan it is the responsibility of the lender to discern whether the loan is a
good risk for the borrower and the lender. If the loan is going to be a poor risk to the borrower

Bank Of America Case Study
Bank of America is a worldwide banking and financial institution that serves over 35 countries, most
commonly located on the Anglo and Latin America clusters. Bank of America has close to 5000
banking location alone in the U.S. and locations in 7 countries of Latin America. "The bank's core
services include consumer and small business banking, corporate banking, credit cards, mortgage
lending, and asset management. Its online banking operation counts some 33 million active users
and 20 million–plus mobile users" (Bank, 2017). The first Bank of America location within the U.S.
was in 1904 in San Francisco, California and opened its first Latin America location in Mexico City
in 1951. These two clusters have a very diverse culture and factors that affect the banking business
in each location. In the U.S. the middle class makes up a majority of the population, while in Latin
America most consumers fall below the poverty line, which is a huge factor in the banking business.
According to Restuccia's thoughts in the Latin America development problem (2013), "economic
performance in Latin America has often been viewed as the outcome of macroeconomic adjustment,
as many economies in the region have suffered numerous economic crises" (p 70). However, Bank
of America strives to promote economic growth, helping their employees succeed and create jobs, as
well as become mobile and accommodating at every location worldwide.
The United States is made up of 3 social classes with the middle class being the majority of the
population. The middle class is considered hard working, educated with moderate and everyday
spending. The U.S. has a constantly changing economy the reliant on consumer spending and
production rates, the work force and product pricing or inflation. When the economy is booming
consumers are more apt to frivolous spending, which means new cars, other loans and credit card
use. Bank of America's success in the U.S. is based on this high consumer spending, more loans and
returns on investments. The consumers of America are accustomed to unnecessary spending on
luxury items and services like eating out and going to the movies. The U.S.'s higher spending and
income provide are greater need for banking and

How To Solve The Foreclosure Crisis Essay
Solving the foreclosure crisis is a vital step toward the country's economic recovery. The sooner
America can resolve this crisis, the more rapidly banks will recover financially, home values will
begin to rise once more and American citizens will return to work. The purpose of this essay is to
provide a viable solution to the foreclosure pandemic. This proposal will benefit the homeowners,
taxpayers, businesses, and the financial institutions in America. It will not benefit every household
experiencing a financial hardship; however it will enable numerous American families to keep their
homes. It will also aid in a more rapid economic recovery for America.
Why the HAMP program is failing
The Chicago Tribune dated December 11, 2009 ... Show more content on Helpwriting.net ...
I believe the lenders are trying to take losses off their books as quickly as possible to maintain a
relationship with their investors. Most financial institutions have a fiduciary responsibility to their
investors to remain profitable. The HAMP program is forcing them to go against those
responsibilities by substantially decreasing the lending institutions profits. This has a sever effect on
the lending institution's ability to lend money as the investor capital and profits decrease. The
decrease of investor funds and profits within the financial institutions is a problem that has taken its
toll on our American businesses because the financial resources are not available to continue lending
money. This yields a terrible outcome for the American public by retaining weak employment and a
slowing economic recovery. I believe this is why so many lenders would rather foreclose upon a
property then modify a loan under this current plan.
The HAMP program is also increasing the future tax burdens of Americans. This leads to animosity
toward the government and toward citizens that need the assistance to keep their homes.
The modification solution
My solution will assist struggling homeowners by reducing their monthly payments, and ultimately
enabling a number of them to keep their homes, keeping the American dream of homeownership
alive. The values of homes across America will start to increase once again. This

Homebuyer Interest Rate
The first mortgage option is a 15–year, fixed rate mortgage. This mortgage type maintains a steady
interest rate for the fifteen–year term of the loan and requires the homebuyer to make equal monthly
payments until the loan is amortized (Zillow.com, n.d.[b]). Because the term of this loan is short, the
monthly mortgage payment will be higher than with a longer–term loan as the principal must be
paid off in a shorter amount of time. The interest rate associated with a mortgage varies by lending
institution, homebuyer's credit score, loan term, location of home, among other variables (Geffner,
2009). For the purposes of this analysis, we will assume that the homebuyer has qualified for Bank
of America's 15–year, fixed rate mortgage interest rate ... Show more content on Helpwriting.net ...
With an initial interest rate of 3.5%, a homebuyer's monthly principal/interest payment during the
first ten years is $772.36. The actual monthly payment will be, as with the 15–year fixed rate
mortgage, increased by the monthly escrow payments of homeowner's insurance and property
taxes– making the actual monthly payment during the first ten years $1,246.36. Under the
assumption that the interest rate would increase by 0.1% every year after the initial 10–year period,
the homebuyer's principal/interest payment increases from the aforementioned $772.36, to $850.15,
with their total monthly payment increasing from $1,246.36 to $1,324.21. Again, the proportion of
the principal/interest payment directed towards interest charges is the periodic interest rate of the
period multiplied by the previous month's ending principal balance. The remainder of the
principal/interest payment is then applied to the principal balance. Under the given terms, the
homebuyer will have paid an initial $43,000 down payment, $172,000 in principal payments and
$118,539.50 in interest charges for a total expenditure on a $215,000 listed home of

Swot Analysis Of Bank Of America
SWOT Analysis
Bank of America is one of the strongest leaders in the banking industry. They are already leaders in
the field and that contributes to their Strengths, Weakness, Opportunities and Threats which is
maintaining this position of leadership. They must always remain aware of shifts in the market and
mortgage industry as well as shifts caused by other mega bank developments that could threaten
their market share. The opportunities currently available include the improved clientele by the
regulations which restrict who they can lend to. With stronger borrowers, in today's environment,
there will be fewer defaults and much less financial risk of loss if the loan–to–value ratio should
turn in revers and the bank ends up holding on to properties that are worth less than the loans they
spent to fund the defaulted borrowers. Threats include outside competition and their own reputation
tarnishment from their participation in the mortgage lending fiasco that created a lot of problems for
many Americans.
Internal to the organization: Strengths and Weaknesses
Bank of America is a member of the Federal Deposit Insurance Corporation (FDIC) and a key
component of the Standard and Poor's 500 and the Dow Jones Industrial Average. As stated above,
Bank of America is not only one of the largest banks in deposits, it is also one of the largest as it
relates to footprint and locations. When analyzing the company's strengths and weaknesses, it is
evident that Bank of America's

Bank of America Analysis Paper
Bank of America Corporation Analysis
Thomas L. Lowther III
MGT /521
May 16, 2011
Chuck Andre
Bank of America Corporation Analysis
Banking is an important industry that not only serves people on a personal level, but the United
States in a global economy as well. First I will conduct a SWOT analysis for the company I chose
which is Bank of America Corporation. Second, I will also identify the company's internal and
external stakeholders. Next, I will describe their wants and needs. And, finally, I will explain how
the company is fulfilling those needs.
Strengths
The Bank of America Corp dominates the market in the United States and also uses different
strategies to gain a competitive advantage over it ... Show more content on Helpwriting.net ...
their management processes, structures and policies help ensure compliance with laws and
regulations and provide clear lines of sight for decision–making and accountability ("Code of
Ethics." 2011). These disciplines, though, together represent just one dimension of governance. The
other dimension is corporate culture of Bank of America Corporation ("Code of Ethics." 2011).
Bank of America corporation culture must be championed by leaders and sustained by every
associate.
External Stockholders As Bank of America corporation work to serve our customers, clients and
communities, and generate returns for our shareholders, we understand that success is only
meaningful when it is achieved the right way, with the right values. Their commitment to this
principle is the key to sustaining the public trust and confidence in their company, and the key to
long term [success.
Wants and Needs
Bank of America deliver for their customer, clients, and shareholders the absolute best product and
services they can. They share a passion for winning and serving the financial needs of individuals,
corporate clients, and institutional investors (Corporate Governance, 2011). We believe that
disciplined execution will lead to sustainable and long term performance. One way they build and

Countrywide Financial : A Large Diversified Financial...
Countrywide Financial was a large diversified financial 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 to
the subprime mortgage debacle. Bank of America was in a position to acquire Countrywide, but they
would need to make some large scale ethical changes to the way they operated.
Countrywide wanted to be the largest real estate mortgage originator in the United ... Show more
3. High ROE and good corporate image that help Countrywide attract an amount of investors, and
also attract people who need loan.
Weaknesses:
1. Lack of internal and external control.
2. Disorder land and capital market.
3. Over consume: because "House America" that enabled more consumers to spend their future
income to buy house that many families have no ability to payback.
Opportunities:
1. Bank of America acquired Countrywide Financial Corporation that it can help Countrywide face
lawsuits, ethical issues and operating challenge. Bank Of America Corp can now easily expand and
enter international markets. There are constant improvement and up gradation of processes in the
banking industry which is an opportunity for the company.
2. Bank of America also benefits from Countrywide's broader mortgage capabilities, including its
extensive retail, indiscriminate and correspondent distribution networks. Countrywide operates more
than 1,000 field offices and has an income force of early 15,000.
Threats:
1. Legal issue: An amount of lawsuits and negative information threat Countrywide and Bank of
America's future
2. Economy: The recent financial economic turmoil and increasing unemployment are threats for the
company.
3. Policy Issues: There are ever–increasing in restrictions in capital markets
Countrywide ignored social responsibility and underwent

President Fdr 's New Deal
At the peak of the Great Depression in 1932 the unemployment rate stood at 25 percent and the Dow
Jones Average sunk to a mere 34, indicating severe economic distress.1 Millions of individuals were
starving on the streets and billions of dollars were lost in the stock market. When Franklin Roosevelt
released the New Deal in 1933, a plan to provide relief, reform, and recovery to the distressed
country, Americans were in dire need of relief. Recognizing that something had to be done quickly,
President FDR implemented a series of programs to immediately mitigate the effects of the
Depression. By focusing on programs to aid business and labor, farmers, housing and homeowners,
banks and the stock market, and the youth of America, FDR attempted to provide the immediate
relief from the Great Depression that America so desperately needed. Although some of the
programs in the New Deal were more successful than others, they succeeded as a whole in providing
the short–term relief that America needed to survive the Great Depression. The first major relief
program for businesses and labor was the Federal Emergency Relief Act. Released in 1933, the
FERA created the Federal Emergency Relief Administration, an agency that not only distributed
federal aid to states for relief, but also provided state–directed work to boost the morale of the
recipients.2 As Harry Hopkins, advisor to FDR on work relief programs stated about FERA, "Give
him a job and pay him an assured wage, and you save

Countrywide’s Unethical Business Dealings
Abstract
It would be convenient to start this research paper by stating that corruption is a challenge mainly
for businesses in developing countries and that it is unrelated to the current affliction of the
economy in the United States. It would also be convenient to claim corruption has declined in
America as a result of awareness raising campaigns and the numerous anti–corruption laws. But
none of those aforementioned statements would be true. Corruption is not the exception, but rather
the rule in today's business practices. In 2004, Daniel Kaufmann, a senior fellow at Brookings
Institution and former director at the World Bank, calculated an index of "legally corrupt"
manifestations which is defined as the extent of undue influence ... Show more content on
Helpwriting.net ...
Subprime lenders are lenders who, for a price, are willing to assume a higher risk than conventional
lenders to purchase or refinance homes (Setzer, 2004). 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). The company's incentive system also encouraged brokers and sales
representatives to move borrowers into the subprime category, even if their financial position meant
that they belonged higher up the loan spectrum. Brokers who peddled subprime loans received
commissions of 0.50 percent of the loan's value, versus 0.20 percent on loans one step up the quality
ladder. For years, a software system in Countrywide's subprime unit, sales representatives used to
calculate the loan type that a borrower qualified for, did not allow the input of a borrower's cash
reserves (Morgenson, 2007). A borrower who has more assets poses less risk to a lender and will
typically get a

A Report On Dream Is Being Stolen By Corrupt Banks
2015
To Whom it may concern,
A grave injustice is being brought upon all Americans, who dream of owning their own homes. That
dream is being stolen by corrupt banks. After the economy crashed in 2009, these banks pounced on
these people like sharks. They conned people into thinking they could save their homes, by
modifications of their loans with lower interest rates.
The exact opposite has happened. These banks devised a devious plan to stall loan applications,
while compounding and adding penalties in the process. By doing this, the amounts of the loans
owed by the unsuspecting homeowners kept getting higher and loan payments due kept rising and
rising, to a point where people could no longer afford to keep their homes and many ... Show more
I know this because I am one of these victims and I personally know of at least 10 others just in my
circle of family and friends. I live in Northeast New Jersey I was raised in a large family. I watched
as my Grandfather, Parents, Aunts and Uncles, break their backs in the construction field, in order to
own and keep homes. I was taught how to work hard, take pride in my work and earn an honest
living. When I finished high school, I went to work for my father, who did construction work. I
labored long and hard, saving all my money so that I would be able to own a home of my own and
settle down to start my own family.
Eventually I started my own business, installing carpeting, doing renovations and tile work. I was
still living with my parents at this time, because every penny I earned went into buying land and
building my house. I am a skilled worker and soon had a fine reputation and my work was greatly
sought after. I paid all my bills on time and enjoyed a high credit rating also, that is until this scam
engulfed me.
As I earned money, I would buy what materials I needed to work on my home. I did so on Sunday's
and in the evenings after working all day long for clients. Finally, in 2008, it was time to order my
log home kit, but needed to take out a loan to pay upfront for it. I applied for a personal loan, but the
economy being the way it was, I was only able to get a 2 year balloon loan. I worked on the

Comparison Of Bank Of America And Southern Bank
The industry that I have chosen to analyze for this paper in the banking industry. The companies
which I have selected to analyze are Bank of America & Southeastern Bank. Bank of America will
represent as the example for the company who has acquired and merged with other banks, and
Fresno Southeastern Bank will act as the example for the bank who has never merged with a larger
bank in any form or has been acquired. Both these banks offer similar products to their customers,
for checking and savings accounts to home and car loans. They both offer investment products as
well. Bank of America has a lot more products on a larger scale due to the size of their company,
and the mergers they have made over their history. They operate worldwide ... Show more content
on Helpwriting.net ...
They sell the debt that have underwritten to investors all over the world. From mortgage–backed
securities to other types of packages bonds, they are sold to wealthy individuals and even the
government of a country. They also sell investment portfolios to abroad. Their strategy involves
presenting foreign investors abroad an opportunity to invest in the USA. There is a huge demand for
investments in the US, as our economy is much smore stable and lucrative then their local
investments opportunities. Companies in the US looking for a capital injection, can also turn to
Bank of America and have them find an investor. They will then underwrite the terms, and broker
the deal. A lot of these types of deals are dealt with foreign investors. Foreigners are always looking
to take their local currency and convert it into dollars, since it is a stable currency, and these
investments enable them to be able to do that. They focus on creating the best investments in the US
for those abroad. While the demand isn't as strong for Bank of America to offer US investors an
opportunity to invest in international markets abroad, they do offer this as well. The strategy on the
business level is go after international investors since the demand is so high for US based
investments, and on the corporate level is to keep creating new investment opportunities as a

The Bank 's Strong Brand Recognition
Strengths
Brand
The bank's strong brand recognition creates the potential to open new areas of growth for the
company and its devotion to its customers is echoed through various awards it has received over the
last few years. In January 2015, Bank of America "was named as a 2015 Military–friendly Employer
by G.I. Jobs magazine" 4 and in 2014, it was "included among the list of 2014 Best Companies for
Diversity by Hispanic Business magazine." 4
Product Innovation
A broad product and service portfolio helps the institution to service its customer base. The bank
offers a range of financial and risk–management products and services. "Its product and service
portfolio includes checking accounts, savings accounts, personal loans, business loans, auto loans,
debit and credit cards and retirement solutions." 4
Enhanced Digital Banking Capabilities
One of the strengths of Bank of America lies within the digital banking realm. Customers appreciate
not only the thousands of ATM's available to them 24 hours a day, but also the various other digital
options available such as: self–serve online banking, Teller Assist, and Apple Pay; all of which have
been a huge success in regards to customer satisfaction and financial feasibility.
Opportunities
Focus on Growing Responsibly
Bank of America's mantra recently is "growing responsibly". Yes, Bank of America wants to
continue growing, but not, for example, at the rate that the Countrywide acquisition cost the
company. They have paid too

Research Paper On Bank Of America
Bank of America is one of the world's driving budgetary foundations, serving singular purchasers,
little and centre business sector organizations and vast companies with a full scope of saving money,
contributing, resource administration and other monetary and danger administration items and
administrations. The organization gives unmatched accommodation in the United States, serving
roughly 48 million buyer and little business associations with around 4,800 retail monetary focuses,
roughly 16,000 ATMs, and grant winning internet managing an account with 31 million dynamic
clients and around 18 million versatile clients. Bank of America is among the world's driving riches
administration organizations and is a worldwide pioneer in corporate and speculation managing an
account and exchanging over an expansive scope of benefit classes, serving enterprises,
governments, establishments and people far and wide. Bank of America offers industry–driving
backing to around 3 million little entrepreneurs through a suite of ... Show more content on
Helpwriting.net ...
CBB item offerings incorporate conventional bank accounts, currency market bank accounts,
testament of stores (Compact discs) and individual retirement accounts (IRAs), noninterest–and
enthusiasm bearing financial records, speculation records and items, and additionally credit and
charge cards to purchasers and little organizations in the United States. The establishment system
incorporates roughly 4,800 saving money focuses, 15,800 mechanized teller machines (ATMs), the
country over call focuses, online and portable stages. CBB likewise offers a scope of loaning related
items and administrations, coordinated working capital administration and treasury answers for
customers through a system of workplaces and customer relationship groups alongside different
item accomplices to the United States–based

Bank of America Case Study
Executive Summary
Bank of America
Bank of America Corp.
Group Members:
Mary Bruton
Shawn Harsaran
Carlos Leal
Tom Egurrola
Jennifer Stanis Broward College
MAN4720
September 09, 2013 Professor James Popino
According to Bank of America, they're focusing on creating real, meaningful connections with
individuals, businesses and communities to help them connect with what matters most. Bank of
America is proud to partner with 57 million customers, bringing them skills and expertise, to help
make their financial lives better. (Bank of America company overview, n.d). These ideas and
objectives are further exemplified through Bank of America's mission and vision statements, as well
as its objectives ... Show more content on Helpwriting.net ...
Strategies
According to an article published in Forbes Magazine, Bank of America's strategy is to find better
ways to serve banking customers through automation and get all of its customers to use all of its
products. CEO Brian Moynihan said in a presentation to investors when the company gets its
customers crossing over from investment services to banking to borrowing, it gets seven times the
revenue. The bank's research shows Merrill Lynch customers have more than $500 billion of
deposits in other banks and $400 billion worth of mortgages with competitors. Bank of America was
among the hardest hit during the credit crisis. It received $45 billion in bailout funds from the
federal government, including $20 billion for Merrill Lynch. The company faced waves of loan
defaults as more customers fell behind and investments soured. Banking customers will see some
changes as the bank adjusts to new regulations that have cut into fees. The bank has reduced branch
numbers and cut jobs, which will continue as more automated and less expensive ways of serving
customers are implemented. Automated transactions are growing at a rate of 8 to 9 percent a year
while teller–based transactions are down 5 percent year after year. Additional growth opportunities
come from international expansions. Bank of America hired 800 people abroad as it worked to boost

investment banking services in other countries.
Industry
Bank of America offers

Central Causes of the Global Financial Crisis
Central causes of the global financial crisis By Norbert Tallosi The global financial crisis of 2007–
present caused the largest meltdown of major economies worldwide since the great depression of
1930. It involved the collapse of large investment banks and as a result affected all markets in the
western world. A number of books, newspaper articles and media reports have been written in
relation to what caused the crisis; due to the vast source of information and discussion on the topic,
origins of the crisis could now be misconstrued. All forms of credible information; accurate
financial data, statistics and reports are available to draw a conclusion from as to the cause, but
greed was a motivating factor through the use of subprime ... Show more content on Helpwriting.net
...
(Kirchhoff, Block, 2004) These home loans came with higher than usual interest rates and due to
stressful periods in people's lives; paying high lawyer fees during divorce proceedings or extensive
medical bills due to prolonged illness, people signed for the loan anyway. (Knowledge@Wharton,
2008) With an inflated rate of return, in a few years these loans became unserviceable. Why did
financial institutions lend a product with such high interest knowing that some people would
eventually default? They proceeded because it made them money from loan fees when initially
writing the loan. (Knowledge@Wharton, 2008) The lenders would make their money on fees and
then sell the mortgages to other Investment banks like Fannie Mae and relinquish full responsibility.
(Knowledge@Wharton, 2008) If the loan went into default, it would be the Investment banks
problem not the original lenders. (Knowledge@Wharton, 2008) To avert the snide practice of
predatory lending in the future, the U.S government implemented legislation to curtail it. (Kirchhoff,
2004) Once again, why would lenders complete such practices if not for greed? Lenders took
advantage of vulnerable individuals, during a crisis point in their lives and weak financial
regulations, passed by Government. (McLaughlin, 1999) However, predatory lending was just spot–
fires in a much larger problem.

Essay On Ethics In Mortgage Lending
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 on Helpwriting.net ...
Bank of America 's company philosophy is "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:

More Than Housing: A Double-Ended Approach to the...
As the economy drops and foreclosures are on the rise, millions of Americans who were financially
stable several years ago are asking the same question, "How could this happen to me?" The crisis
has occupied the minds of politicians, who are trying desperately to solve this problem, but the
tragedy continues as more and more Americans are foreclosed on with no alternatives. The
foreclosure crisis will not be solved by simply lowering interest rates, firing loan brokers, or other
short–term, ineffective solutions. The long term solution to the housing crisis has nothing to do with
housing. The government has lost its way and needs to redirect the way the whole economy is run.
The reason why the foreclosure crisis calls for such a ... Show more content on Helpwriting.net ...
If it were truly feasible for everyone to own a home, universally inclusive home ownership would be
great. However, if a person is not in a financial position to pay 20% of their house on the down
payment, how can that person pay for 100% of their house in their lifetime? If someone has invested
20% into their house, they are less likely to walk away from their houses than someone who put 0–
3% down. Because the banks were basically loaning out money for free, people were unwisely
aggressive on their purchases.
To slow this down, the banks need to reinforce their standards for loans. However, this may take
several years to implement. In the mean time, something needs to be done. People who have already
moved out of their houses should move into a more affordable living space, either a house or
apartment they can afford. Foreclosing is a lose–lose situation. Here's why: say someone owns a
hundred thousand dollar home and is making a $1000 payment to the bank per month to pay it off.
Now that the banks are in a crisis, the banks demand the money be paid more quickly or they will
foreclose on the deal. The owner, who is not immune to the economic crisis in America, cannot
increase monthly payments. At the threat of foreclosure and a lawsuit, a logical alternative is for the
owner to transfer this $1000 per month to a lawyer so the bank will not come after

The Global Financial Crisis Of 2008-10 And Its Impact On...
The Global financial crisis has been described as the worst financial crisis after the Great
Depression of the 1930's. This was a Financial Crisis and affected terribly the banks of the United
States of America. The banks during this time had low capital base and suffered from a serious
liquidity crunch. Leveraging was very common at this time. This increased financial instability of
the banks called for major changes in the financial regulations by the government. This essay will
discuss the Origin of the Global financial crisis of 2008–10 and its impact on the financial health of
the institutions. The main reason of the Global financial crisis was primarily Sub–Prime mortgages
by the banks. The major U.S banks were involved in ... Show more content on Helpwriting.net ...
The banks were affected terribly as the borrowers were unable to repay the amount loaned out to
them to buy these real–estate properties. Also, the poor collaterals were there, so this made sure
banks were not able to recover their money back. A lot of Foreclosures and evictions were observed.
Also, many of these Sub–Prime mortgages were packaged into another financial instrument called
as 'Mortgage–backed Securities' which were falsely given good credit ratings by the rating agencies
and sold out as been risk free. These Mortgage backed securities ultimately defaulted, contributing
to greater loss. During this time, the banks were robed out of any liquidity. BNP Paribas, a major
bank of U.S had to sell its hedge funds to get in some cash. Excessive risk taking by these banks
robbed the capital out of the system. Many major banks failed at this time. Even, the banks which
were given the status of 'Too Big to Fail' also witnessed a major collapse, ruining the financial
health of the institutions. Furthermore, the Federal Reserve too granted loans and aid packages to
bail–out these banks, which led to magnify the world financial system and the health of the U.S
economy. An Expansionary fiscal and monetary policy was adopted. The Low capital base of the
banks called in for some serious changes in the regulatory and financial laws of the country. This
called for the Basel norms which determine the adequacy of the banks liquid assets

Foreclosure Crisis: A Time for Change
The past decades have dictated our economic policies; the housing market was fed by the politicians
instilling the thought that every person should be a homeowner. According to a speech by President
William Clinton in 1995, he boasted about making homeownership a reality, "The goal of this
strategy, to boost homeownership to 67.5 percent by the year 2000, which would take us to an all–
time high"(Wooley). As a result of political ploys like this, banks and lending institutions came up
with products such as the 107% financing, interest only loans, negative amortization programs
which allowed loans to start at a 1% interest rate, sub–prime credit packages for those homeowners
only 1 day out of bankruptcy, and the no document qualifier ... Show more content on
Helpwriting.net ...
The same way that President Clinton boosted about 67.5% of all American people could become
homeowners in 1995, will be the same amount of people that lose their homes potentially putting
children out on the street and increasing the unemployed homeless population taking up residence in
tent cities, where is the hope now? Now is the time to act and include benefits to all homeowners
that still believe in the America Dream. The Government and the Banks need to provide
modification programs to all homeowners to reduce their interest rates to 4.75% regardless of equity
or loan to values. If these homeowners who are currently 200% loan to value, care enough to strive
to make every payment timely but are in loans that are coming due or ready to adjust, the industry
owes these homeowners the right to a loan that they can afford and maintain regardless of the
economy. Each homeowner in America is surrounded by foreclosed properties or short sales
affecting their value and impeding any ability to successfully sell their properties. Due to TARP,
Troubled Asset Relief Program, Banks made record profits in 2009 and were able to repay these
government funds within the year that they were provided. Banks invested the government money
and, as a result, made record profits. CEO's received their large bonuses as a result of the repayment;
however, homeowners lost their homes, jobs and confidence in

The Crisis Of 2008 : Is It All The Feds Fault?
I chose to do House of Cards because I felt like it gave me, albeit a little dramatically, a nice
overview of everything that happened in 2008. Not being old enough to remember what happened, I
decided that instead od focusing on a more micro topic, I would choose one that gave me a broad
view to educate myself more on everything that caused the crash, and how we can, at least try, to
prevent it in the future.
How our economy collapsed
Is it all the feds fault?
The dot–com bubble in 2000 was the start to the, still current, historically low interest rates – all
thanks to the Federal Reserve. Along with many other reasons, this aided the financial crisis of
2008.
Subprime loans
Since interest rates were so low, since mortgage and ... Show more content on Helpwriting.net ...
After an urban report in 1997 found that local lenders seemed more than willing to serve
creditworthy low to moderate income and minority applicants. Upon that alligation in 1997, Fannie
and Freddie modified their systems, which led the way for vaste numbers of sub–prime and
nontraditional mortgages. The GSEs argued that if Congress constrained the size of their mortgage
portfolios, they could not afford to adequately subsidize affordable housing. By 2007, Fannie and
Freddie were required to show that 55 percent of their mortgage purchases were LMI loans and,
within that goal, 38 percent of all purchases were to come from underserved areas (usually inner
cities) and 25 percent were to be loans to low–income and very–low–income borrowers. Meeting
these goals almost certainly required Fannie and Freddie to purchase loans with low down payments
and other deficiencies that would mark them as sub–prime or Alt–A. From 2005 to 2007, Fannie and
Freddie bought approximately $1 trillion in sub–prime and Alt–A loans. This amounted to about 40
percent of their mortgage purchases during that period. Moreover, Freddie purchased an ever–
increasing percentage of Alt–A and sub–prime loans for each year between 2004 and 2007. It is
impossible to forecast the total losses the GSEs will realize from a $1.6 trillion portfolio of junk
loans, but if default rates on these loans continue at the unprecedented

Subprime Lenders And The Financial Crisis
Subprime loans are ethical tools which were wildly misused during the time leading up to the
financial crisis in 2008–2009. Subprime lending targeted borrowers who would typically not qualify
for standard loans for various reasons. These included low credit scores, low income, and history of
late payments. The loans were offered at a rate higher than the market rate due to the increased risks
of the borrowers. Many of the clients Countrywide supported were much less likely to be able to pay
off their loans compared to traditional borrowers. In the years leading up to the financial crisis, the
real estate industry was flourishing which encouraged even clients who could not afford fancy
houses to use subprime loans to finance their homes. ... Show more content on Helpwriting.net ...
Inflation of real estate appraisals also added to more reckless lending. Each of these factors
contributed to the plethora of homeowners who could not afford their houses and pay their
mortgages. If the idea of subprime lending had remained pure, this financial tool could have helped
many people change their lives for the better. However, businesses were careless and greedy enough
to lend to increasingly risky clients, which ended up harming their businesses, their clients, and
eventually the entire economy.
During the early 2000s, when subprime lending reached its peak, Countrywide was extensively
involved in risky transactions. To ensure that the company continued to grow and increase its
profits, many ethical boundaries were tested. Incentives were offered to salespeople who were
rewarded for taking risks. Subprime loans were given to clients who could not afford the loans and
conversely those who qualified for traditional loans. Appraisers exaggerated housing values to
reassure lending. Liar loans were one of the biggest areas of ethical concern when Countrywide was
investigated in the late 2000s. These specific mortgages were given to clients who were not asked to
provide proof of their indicated income. Borrowers would overstate their income in order to attain
liar loans, possibly with the help of Countrywide personnel. These loans were handed out for the
purpose of generating easy, short–term profits through increased fees and high interest

An Economic Event Intertwined With Credit Crunch
1.Introduction
An economic event intertwined with credit crunch is the U.S. subprime mortgage crisis. In 2007, the
subprime mortgage crisis dealt a huge economic blow to America and then had a great impact on the
world economy. Although several actions, such as lowered the target for Federal funds rate and the
discount rate, were taken, the crisis still had severe, long–lasting consequences, which makes the
world economy still in a slow recovery so far. The credit crunch of 2007 was triggered by several
factors. Analyzing the cause of credit crunch can help us reduce the probability of it and then
prevent financial crisis in the future.
This essay consists of three parts. At first, it will discuss some causes of the credit crunch of 2007. ...
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****In the 1990s, shortage of financial capital and low–quality borrowers forced the banks to
reduce the loan supply. The credit crunch of 2007 is more complicated than ever before. The first
reason was that the acceleration of globalization involved more international investors, so the credit
crunch had more global implications. And the other reason was that new ways of packaging and
reselling assets had been introduced. Several factors should be taken into account when we trying to
figure out what result in such a crisis.
2.2 The development of subprime mortgage market
****When discussing about the credit crunch of 2007, the United State subprime mortgage crisis is
a good point to start with. The direct cause of this crisis was the bursting of the U.S. housing market
bubble, but things can date back to about 2000. At the beginning of the 21st century, house prices in
America started to experience an unprecedented rate of growth due to a low interest–rate
environment. From 1997 – 2006, according to the Standard & Poor's / Case–Shiller national home–
price index, the U.S. housing prices increased by 124%. There were a number of causes of this
phenomena, such as the low Fed funds rate. Although other western countries also experienced the
similar trends, for example, housing prices in the U.K. increased by 194%, while those

Case Analysis Of Jp Morgan And Bank Of America
JP Morgan and Bank of America:
Too big to fail or too big to survive?
Case Writing Outline
1.– Companies environment
2.– Results and performance throughout the years
3.– Significant economic events for the companies
4.– Financial statements
5.– Recent performance
6.– Presentation of ratios (Final Presentation)
7.– Conclusions (Final Presentation)
Preamble
JP Morgan and Bank of America: Comparison, with financial ratios, the financial structure of the
biggest banks of America.
As 2008, we are living difficult moments in which almost all the countries are really indebted, and
the possibility of a financial recession is imminent. It would be interesting to compare via ratios and
analysis the year on year performance, and how is the financial ... Show more content on
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Foreign exchange, treasury management, and short–term investing options; debt and equity
underwriting and distribution, advisory services and merger related services. This company`s
segment offers sales and trading services for derivative products and securities in primary and
secondary markets; financing, market–making, securities clearing, custody services to institutional
investor clients and settlement; as well as risk management products.
The Global Wealth and Investment Management segments offers investment and brokerage, estate
and financing planning, cash and credit liability, fiduciary portfolio management, and asset
management services; benefit and retirement plan, and other specialty asset management services.
The company`s Consumer and Business Banking segment providers money market savings
accounts, CDs and IRAs, investment accounts, checking accounts, as well as traditional accounts
and credit and debit cards. Also other lending related product and services, working capital

management, and treasury solutions. This segment as well offers its products and services through
operating more than five thousand banking centers, sixteen ATMs, call centers and mobile and
online banking

Recession Within Americ Recession
Recession within America Today the United States Americans more than ever; there is a constant
fear of an awaiting recession due to the economy. The recession in the later 2000's has been known
as the greatest economic decline since the Great Depression. The United States of America, the
banks and businesses are not able to succeed and are failing due to the market. Many people across
America cannot afford their homes or bills due to the unemployment rate that seems to keep
increasing. Many people blame this on the higher oil or gas prices, and the wars that the United
States acts on. The recession has overall declined our economic activity in business profits,
employment, and investment. This is all due to our falling market, and the rise of prices that so
many Americans cannot afford. The American dream is sought after by so many people within the
United States. Many people spend an entire life time trying to build that dream and prepare for their
retirement. The economic growth within the United States and our American government plays a big
part in our future. In the past ten years, the American government has been on a roller–coaster with
its housing market. The housing market started to go through a big decline in 2007; construction
was falling at an all–time high. From 2000 to 2006 there were around 1.5 million homes that were
built each and every year to replace the ones that were in disrepair. If the market was to keep the
trend of 1.5 million homes

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