Scholarship Essay

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
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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
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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 content on Helpwriting.net ...
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

Quality Control in Loan Appraisal Review
The strategic value of QC process in the mortgage industry
THE STRATEGIC VALUE OF THE QUALITY CONTROL PROCESS IN THE MORTGAGE INDUSTRY (2003) The mortgage industry has
originated record loan volumes month after month for the last three years. The sub–prime segment in particular has greatly benefited from the boom in
the housing market buoyed by interest rates that have approached historical lows. However a second condition is critical to explaining the dramatic
expansion of the sub–prime segment: the unprecedented access to large amounts of financial resources which has been leveraged to fund lenders'
growth. Institutional investors reacted to equity markets far more unpredictably than in the bubble years by redirecting a greater share ... Show more
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Fair and correct application of appraisal rules 2. Consistency between appraised and market values. In the new QC model all submitted appraisals
were reviewed to detect errors or inconsistencies that identify riskier appraisals. When anomalies were detected, appraisals were sent to the next
control stage for a more thorough and sophisticated analysis. At the end of each stage, appraisals were scored based on the number and severity of the
anomalies detected. The overall score allowed the lender to develop an appraiser–specific risk profile that was then aso leveraged to make grounded
decisions about future appraisals submitted by the same appraiser. The system introduced relied on an enterprise document management solution
(EDM) to further improve the efficiency of the QC process. By leveraging the EDM's queue management functionalities the lender implemented a
system that allowed QC managers to coordinate the workload balancing activities among multiple locations. Furthermore, providing QC analysts from
different offices with the ability to access appraisal files helped the client improve the quality of the analysis by taking advantage of reviewers'
experience and/or specific geographical market knowledge. Key features of the new operating model: Improving level of integration between QC and
production activities. Screening activities were mostly automated by leveraging the existing loan origination system (LOS). The first level of

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

Public Debt : Why Private Debt Is The Bigger Problem Essay
Public vs. Private Debt: Why Private Debt is the Bigger Problem, and how it got So Out of Hand
Much of the rhetoric regarding growing American debt and its detrimental effects focuses on public debt–government debt acquired through deficits
and government borrowing. The clear concern many have regarding public debt is not undue; with that said, it is worth noting that usually government
debt, and even consecutive deficits–if managed correctly–are relatively benign. Particularly when compared to the much more harmful and far less
scrutinized form of debt, private debt–debt that is accumulated by private citizens and corporations through credit cards, mortgages, student loans,
corporate loans, etc. It is time private debt and the multitude of reasons it is a cause for concern are discussed more widely.
Public debt in the United States is in the region of $18 trillion and a little over 100% of GDP. Private debt on the other hand is in excess of $40
trillion–more than double–and more than 220% of GDP.
Public debt is vexatious, but it is unlikely to precipitate a complete collapse of the American economy. Moreover, the sharp increase in public debt
since the 2008 recession is within reason. The 2008 recession caused the loss of millions of jobs, which in–turn resulted in two notable effects–a
reduction in government revenue due to diminishing tax receipts, and an increase in government spending due to an increase in unemployment. This
exact paradigm occurred in virtually all

Hammertoes Research Paper
Why Hammertoes Will Not Heal On Their Own
The feet are the foundation of the body. Often, people don't even realize how much they use and rely on them. Nevertheless, if foot problems occur,
the value of keeping feet healthy and happy is undoubtedly becomes an understatement. One's daily life, health, and the level of participation in
enjoyable activities, can all be greatly impacted by problems of the feet.
One issue that can arise is called "hammertoes." Simply judging by its name, it may be hard to take this foot problem seriously at first. However, it's
important not to be fooled. This buckling, or curling, of the toe joints is a progressive and often painful condition.
Although in the beginning stages, the buckled joints may be flexible and not the source of much discomfort, treatment for hammertoes from a
specialist should always be sought ... Show more content on Helpwriting.net ...
Hammertoes occur due to a muscle and tendon imbalance around the joint of the toe, causing the joint to curl and possibly become buckled in an
arched position. Although this does have an aesthetic impact of the foot's appearance, it really shouldn't viewed as a mere cosmetic concern. As a
structural deformity, hammertoes can often make walking difficult. They can also cause the development of painful corns, and lead to other
concerning foot problems.
People can get hammertoes for a variety of reasons. One leading cause is genetics. Those with inherited foot types, such as flat feet or high arches,
have feet that are less stable and are often predisposed to develop this deformity. Other factors that can lead to hammertoes include:
Wearing Shoes That Are Too Tight/Small: footwear that puts too much pressure on the toes or pushes them together, like pointy
–toed high heels, can
create the joint and ligament misalignment that causes hammertoes.
Ailments or Trauma: Those with foot nerve damage due to injury, or those who have diseases like arthritis or diabetes, are more at risk to get

The Great Recession
A variety of events led to the event that would be known as the Great Recession. Blame is shifted around between the large Wall street banks, the
federal government giving loans with very low to zero interest rate, and investors desperately wanting something to invest in. The large Wall street
banks are to blame the most, as everything leads back to them. The origin starts of the recession starts earlier, in the late 90's and early 2000's. After
the dot com bubble burst and the September 11th terrorist attacks, Federal Reserve chairman Alan Greenspan lowered the interest rates on treasury bill
to only one percent in an attempt to stabilize the minor recession that happened shortly after 9/11. This drove away investors who traditionally
invested in the treasury bills. What this did cause though, is it became very easy for the Wall street investment banks to take tons of cheap credit. This
is where the housing market comes in. The price of housing was seen as always rising. Potential home owners would save for a down payment, then
contact a mortgage broker. The mortgage broker would then put the potential home buyer with a mortgage lender, giving the mortgage broker a
commission. Now, the mortgage lender need liquidity to be able to keep giving out the mortgages. Lucky for them, investment bankers are there to buy
the mortgages, giving the mortgage lender the liquidity to loan to more home buyers, giving the mortgage brokers more commissions, and putting
people in more

The Demand For Housing Changed Drastically
PART 1:
In the period between the years 2005 to 2009 the demand for housing changed drastically. Financial institutions were involved in some more deceitful
lending practices. They began offering what are known as adjustable–rate subprime mortgages, which is when an institution gives out a loan to
someone with a lower credit score and are thus a higher risk. With the low–interest rates being offered, an ever increasing amount of people took out
loans in hopes to purchase a home to make a profit. This caused the demand for houses to skyrocket, which in turn increased the prices. With prices
increasing, more and more people were speculating that the costs of houses would increase indefinitely, and with ease of access to these mortgage loans
... Show more content on Helpwriting.net ...
Typically sub–prime mortgages are seen as high–risk, so therefore they have higher interest rates. When you buy a sub–prime mortgage bond you are,
in essence, becoming the lender to someone who has a sub–prime mortgage. You are paying off theirdebt to whoever their lender is and having the
borrower owe you instead. Now when you buy a credit default swap, you are buying insurance on a loan in exchange for some of the interest. So, for
example, if I were to lend someone $1 million, buying a credit default swap from a company will ensure that I get that $1 million back even if the
borrower defaults on the loan. Now institutions are able to use credit default swaps to bet for a profit. How they do this is instead of becoming a
lender to someone they just get insurance on a hypothetical loan. When this person were to go bankrupt, the person who owns the credit default
swap will then get the insurance money, hopefully to his profit. So when betting for profit in the housing market there are the three options. If you
want to take your chances in the housing market then you would go for a mortgage and hope that you can make a profit on whatever piece of real
estate that you purchase. You could also get mortgage bonds and bet that whoever you are loaning the money to will be able to pay you back with
whatever interest rate has been decided upon. Lastly, you could get credit default swaps, which is betting that whoever has the loan is going to default,
which was the best

How Do Foot Transforms?
The first known history about 'foot inserts' was over 10 centuries ago. To help the support the foot they would place layers upon layers of wool to
release the aching pressure from the arch of the foot. A few centuries later people started going to the doctor complaining there feet were in so much
agony so they created a plaster cast made from the patient's foot (feet). These casts were made by wrapping dipped plaster to help form the foot and to
make sure it was accurate. Once the cast hardened the doctor removed it from and sent the cast over to the orthotics lab then was created into an
orthopedic insert. In 1865, Everett H. Dunbar was the first person, on record, to test his theory if putting leather lifters between the insole and outsole
of the arch worked better than the wool. His theory shows that the wool was better because it was much softer on the arch of the foot that than the
leather. Even though the leather was tougher on the feet it lasted longer than the wool. In 1910 Dr.... Show more content on Helpwriting.net ...
As time progresses physical activities also increased. Which means the increase of injury, doctors say the pain starts from your feet because in almost
every activity your running, jogging or walking. That being said the faster you run the more pressure you put on your feet, ankles, and or knees.
Doctors still suggest shoe insert to minimize the extreme joint movement and also medication if needed. Gel shoe inserts come in many different
types of gel. There are two main type of gel inserts the thin flimsy kind or the thick jelly like material used in many gel inserts today. When buying
gel it absorbs the shock waves made by every step taken. There is a new liquid filled insert which is a self–leveling liquid base. This evenly distributes
your entire body weight across the surface insert which then relieves pressure from your

Barefoot Research Paper
Remember the carefree days you spent as a kid running barefoot in the grass? Or the feel of sand between your toes as you built sandcastles on the
beach during summer vacation? For many kids, this carefree time was often interrupted by parental figures proclaiming the need for footwear. Mom
and dad had a point. After all footwear, for the most part, is made to protect the feet from dangerous stuff like sharp objects and abrasive surfaces. But
as it turns out, going barefoot also has a plethora of health benefits from preventing leg and foot injuries to reducing insomnia and easing stress.
Do we even need shoes?
Here's a shocker, our feet were actually designed to function without shoes. For centuries humans have gone barefoot. It ... Show more content on
Helpwriting.net ...
Sorry but you wouldn't get the same grounding effect by bringing sand home and playing in a sandbox. (research this)But if you live on or near the
beach this may be your top pick over the others on this list. Take a romantic walk with that special someone, go for a run, or build sandcastles. It
doesn't matter what you do as long as those feet are bare.
oGrass– Take your shoes of and let those little piggies revel in the feel of grass and earth. Plus, barefoot grounding is a great stress reliever (link).
Perfect after a hard days freelancing.
oCeramic titles– Keep in mind that ceramic titles that sit on wood or vinyl, are not good conductors. Instead, make sure ceramic tiles sit in a concrete
slap or in the ground. Also, ceramic title that have a glazed surface can also stop conductivity.
oNon painted concrete and brick are also good grounding surfaces.
Faux Grounding Surfaces include asphalt, wood, rubber and plastic. These materials interferes with the flow of negative electrons. Oddly enough,
rubber, plastic and wood (sandals) are primary materials in modern day shoes. No wonder there's no proper grounding when we wear shoes.
Ground yourself, even when the weather outside isn't

The Great Recession Of 2008
The great recession of 2008 affected everyone around the world. The great Recession is considered the second worst economic crisis in American
history, behind the Great Depression.
The Recession of 2008 was caused by two major faults: the use of subprime lending and changes in banking culture leaning towards self interest within
the banking industry.
There is no doubt that subprime lending was a major cause of the Recession. It was a tactic used by investment banks in order to get more money from
unsuspecting homeowners. However, lenders found out that most of the people who were qualified to have a mortgage already had one. In turn, the
lenders had to lower their credit criteria for people to take out a loan on a house. This is how the term subprime lending came to be in the financial
world. As a result of subprime lending, the investors were able to make millions off of these mortgages. " Many American homeowners bought houses
they could not afford, signed into mortgage agreements they could not understand or which were misleading and took equity out of homes as if they
were cash machines" (Cushman 1).
To illustrate this point, it requires some explanation regarding how investors made their money from subprime lending. Wall Street started bundling
home mortgages and selling them to investors, so when the investors started making large amounts of money, they started to push for more mortgages.
Now a mortgage is a loan that someone takes out of a lending bank to

The American Dream Is All About Stability
The American dream is all about stability. Owning a home, having a well–paying job, a yearly vacation and children are stages of the American dream.
Above all of them, owning a house is the most important because that means one is secure and stable. My auntie, Evelyn, had reached the biggest
stage of the American dream: owning a house. After hearing the good news my family and I planned to visit her and see the new house, but it was
too late before we got see her new house: the value of her house dramatically decrease and my auntie was forsaken. So, she decided to let the bank
take her house instead of making the house payments. Just like my auntie, Evelyn, many American families were affected by the financial crisis in
2007–2008. Although the financial crisis was a horrific experience, there are some positive aspects. The hot potato game After the optimistic forecast
from the realstate that the houses value were going to increase, many institutions started to make adjustments to take profit from this trend. In some
cases, prime mortgages were allowed for subprime borrowers to take. This might look like a great idea to financial institutions because the house
values were rising: if a people (who in the first place couldn't afford a house) stop paying their mortgages then the bank could sell the house for a value
greater than the one at the moment of default. Everything was going well, so how is it that the crisis unfolded? Well, these institutions wanted to make
more profit

You Can Call Me A Boomerang Buyer
You can call me a "boomerang buyer." I just recently heard of this term, and it describes me perfectly. You see, a few years back I bought a home with
a sub–prime loan. Then the US housing market fell apart, and lo and behold, my new house was underwater and sinking fast. Then, I got laid off from
my job. Top all that off with the fact that my ARMloan adjusted three years into ownership, and it was the perfect recipe for disaster.
Hence, I lost my home. I moved into an apartment. Thankfully, my income bounced back. It's been three years now, so I qualify for a FHA loan.
Thus, I am about to become a "boomerang buyer." Unfortunately for me, the market has rebounded so well in Denver, Colorado, were I live that I
cannot afford ... Show more content on Helpwriting.net ...
If something broke in my apartment, I just called the leasing office. It was a relief after a long day's work not to come home and take care of a house.
I liked the maintenance free lifestyle so much, I even called them to replace my lightbulbs!
As a result of the real estate crisis, I think the nation as a whole learned a few lessons. First and foremost, have stricter guidelines and tighter lending
standards. Do the appropriate screening for borrowers. Do not loan money to someone with an uncertain ability to repay. In my particular situation,
at the time of my loan application, I was receiving $950.00 per month in maintenance payments from a recent divorce. Documentation was
submitted to the bank that the maintenance payments were temporary and would cease in three years. They would stop at the very same time that
the ARM would adjust. Who in the world thinks that is a good idea??? I certainly didn't. I knew I was getting a bogus loan, but they were willing
to give it to me, so I was going to take it. I was fresh from divorce and all of a sudden the primary breadwinner. I needed somewhere for my daughter
and I to live. My exact thoughts were, "Well, that is three years from now. I will worry about it then." My mind was thinking this way because my
need for housing was immediate. Which brings me to the second lesson we have learned: Short term decisions have long term

Compare and Contrast
Course Project – Part I
AirJet Best Parts, Inc
Student: Goldie Scarbrough
Course: Finance
Instructor: Professor Mike Woodard
Date: 03/23/2013
Task 1: Assessing loan options for AirNet Best Parts, Inc
The Company needs to finance $8,000,000 for a new factory in Mexico. The funds will be obtained through a commercial loan and by issuing corporate
bonds. Here is some of the information regarding the APRs offered by two well–known commercial banks. Bank| APR| Number of Times
Compounded | National First | Prime Rate + 6.75%| Semiannually | Regions Best | 13.17| Monthly |
1. Assuming that AirJet Parts, Inc. is considering loans from National First and Regions Best, what are the EARs for these two banks?... Show more
Preferred dividends are generally fixed they can be valued as a constant growth rate of zero. You use the zero growth models for the preferredstock and
the assumption that the dividends always stay the same and you use the constant growth model for common stock because the dividend grows by a
specific percent a year.
4. What would happen with the price you computed above if AirJet Best Parts, Inc. announces that dividends at the end of the year will increase. What
if the required rate of return increases? What changes in dividends will affect the stock price and how?
If the amount of the dividend were to increase at the end of the year, the common stock amount would increase. If the required would rate of return
increase, the current share price of common stock would decrease. As the stock price increases, the risk becomes higher for investors but they
would be willing to pay for the higher price because there is also an expectation that there will be a higher return in dividends. An increase in
dividends would make stock higher as investors will see that the stock pays good dividends and they will be willing to pay good money in return for a

good payout.
Task 3: Bond Evaluation
AirJet Best Parts, Inc. would like to issue 20–year bonds to obtain remaining funds for the New Mexico plant. The company currently has 7.5%
semiannual

Should Colleges Leave Students Unprepared For The Future?
In today's society colleges take the easy route in order to make it easier on themselves when in reality they are hurting the students and in doing so
damaging the work force at the same time. Colleges set the students up for failure in numerous ways. From finically, socially, and not properly
preparing them for the real world. Colleges are solely responsible for these problems and it is up to them to fix it. The statistics and facts are their to
prove these beliefs and it's about time changes are made to protect and aid the students. Colleges set the students up for finical loses before they even
start the first day of college. They don't inform students of any cost especially the cost of four five or six year educations. They leave out... Show more
It is a national crisis that needs to be fixed immediately. The youth is our future and if we keep setting them up for failure then the future of our
country isn't so bright. Hanson completely supported my claim. The blame and responsibility is on the colleges. As stated " the public is steadily losing
confidence in undergraduate education" . The students put their trust into the colleges and in majority of the cases the students are let down when
they leave college and face the real world and they are ultimately not properly prepared. The perfect question was posed at the end of the essay "
why make campuses exempt from realities commonly found elsewhere". It is as simple as day, we need to force colleges to go back to following the
proper rules and regulations that every other huge organization/work force has to

Crm Rbc Financial Case Analysis
Background: The Royal Bank of Canada using CRM and customer profitability tools to gain a competitive advantage in Canada's increasingly
crowded financial services market. Key Issues: RBC financial, a full service bank in Canada is facing fierce competition from leading financial
institutes and new niche–market entrants after deregulation, the bank is also struggling with its 7th ranking out of 8 among financial institutions in the
bank's internal value for money study. Mr. Mclaughlin, the VP of CRM and information management have several questions in his mind– Having the
real customer profitability numbers and using CRM tool, RBC know clearly about the customer preferences and needs, issue is what should RBC do
with this... Show more content on Helpwriting.net ...
How customer profitability is used for marketing decision making? After profitability and lifetime values are determined, these measures are included
for determining customer decisions for – Customized Marketing Campaign Customer profitability was a determinant used for segmenting and
targeting, studies were done on customers' likes, dislikes and types of products they would benefit from and models were developed to determine their
propensity to buy. Establishing Service Levels RBC also determined a set of customer treatment strategies using the customer segment categories,
customers category would determine the length of wait and type of customer service representative the customer talks to. Product Design & Pricing
The CRM system used customer profitability and future potential calculations to give pricing parameters to account managers to determine how to
price products depending on the customer. Packages vs. Fees Another use for customer profitability data was to inform in the debate over whether to
change for services using a flat rate package or charge fees based on the amount and type of transaction the customer was generating with the bank. Q3.
Explore alternative decisions and guidelines for Riech and McLaughlin? Calculation of future LTV and profitability: (page8, para after exhibit4) 1)
Assume that current

Recession In Australia Essay
not have otherwise got, at perhaps lower levels of penalty rates than they would have wanted, but they got a job.
In the end, the greatest social dividend from good economic management is full employment. By dismantling industrial reforms, Mr Rudd's government
was arguably adding to unemployment.
Although the government at the time delivered fiscal stimulus programs, which were subject to criticism, there is no doubt that Australia did not end
up down the same path of its fellow advanced economies.
Some recession is avoidable and, as I have mentioned above, Australia fared extremely well compared to other developed countries. That was the good
news. The bad news, at the time, is that the Australian government, through the decisions it procured, made it worse that it might have otherwise been.
... Show more content on Helpwriting.net ...
As I have touched on earlier, one of the causes of the GFC and why the sub–prime came about is because people were essentially leant money when
they could not repay it. Too many people were given keys to these houses without any real capacity to service their loans. Obviously, this was not the
only reason for the meltdown but it certainly played a very big part in the crisis.
If a government wants to help a poor person buy something, it is preferable that they give that poor person a cheque off the bottom line of the budget
and not have the banks and financial institutions lend that poor person money in circumstances where he or she can never repay the money. If you
securitise something that is a sound product, then the end result of that securitisation will not be as bad as the end result of the securitisation of
something that is a dud product in the first place (e.g. sub–prime

Great Depression 2008 Essay
History has shown us again, and again that when power is left unchecked it becomes corrupt and out of control, that is the iron law of oligarchy. In
the US we saw this happen recently in the 2008 economic meltdown. The banks and corporations should never have been aloud to become "to big to
fail," and once they did grow to a point when they were there should have been more government oversight to make sure things did not get out of hand.
After the great depression laws were put in place to try to prevent something like that from ever happening again, but we undid those restrictions and
ended up in a place eerily similar to somewhere we had been before. In this paper I will cover a brief history of the great depression, and show how
the situation in 2008 was all too similar. I will also discuss and analyze the factors that brought us to the tipping point in our most recent economic
scare. And finally I will explain why the actions taken by the FED were necessary and kept us from an even more ... Show more content on
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But depressions are different, they also come around every now and again but when they come they have the capability of toppling giants. If a huge
company with thousands of employees and ties to other large companies goes down it can easily destroy the whole system and ruin the American
economy along with the economies of many other nations. It is clear that these companies failing can cause immense damage to an economy but it
is not clear what causes these companies to fail in the first place. Back in the depression it was fear and oversight that caused the banks to fail and in
2008 it was the same lack of oversight that allowed things to get so out of hand that the economy was on the brink of total collapse. Luckily we
learned from our mistakes in the past and the right steps were taken to keep the economy on its

Commercial Bridge Loans
The commercial bridge loan act as interim financing and is used to quickly close on a commercial real estate property. These types of loans are also
used to take advantage of an opportunity that is only available for the short–term or to save real estate from foreclosure. Bridge loans tend to be more
expensive than the usual commercial financing options. This is because commercial loans are riskier than conventional loans.
The term, "commercial bridge loan" generally applies to the use of the funds instead of the source of the funding or the guidelines that are imposed
during the transaction. In a sense, all commercial loans can be bridge loans. However, normally, the term is associated with programs that fall into the
unconventional realm ... Show more content on Helpwriting.net ...
With terms of 12 months, from two to four points may be levied. The LTV (loan to value) ratios tend not to be greater than 65 percent for properties
that have been classified as commercial.
A first charge commercial bridge loan is typically available at a higher loan–to–value ration than a second charge loan. This is because of the lower risk
level involved. At times, commercial bridge loans are closed, meaning that they are available only for a timeframe that has been predetermined.
Alternately, they can be open, which means that a fixed payoff date has not been determined. In the latter case, a required payoff is usually set after a
certain length of time, however.
It is not uncommon for a property developer to obtain a loan while approval is pending for a required building permit. They can also be used by an
already–existing business to enable that business to run smoothly during a transitional period between CEOs or other company officers. Additionally,
they can be used to sustain a company from running out of money between successive private equity financing operations and to carry businesses that
are in trouble while their owner(s) seek larger investors. Finally, the commercial bridge loan can be used asdebt financing to maintain the business
through the period right before an acquisition or initial public

Cost Financing And Equity Financing
Debt and Equity1
Moving right along, outlined next will be several funding options available for start–up businesses that enable people, like me, to be able to put our
dream in motion. There are two types of capital that can be raised, debt and equity. Now some would think that as long as there are funds there to
work with, regardless of how they were procured, the end result would be the same. However, that is not the case. Debt financing and equity financing
have significant differences in how they affect the business's bottom line and in how they are acquired. For instance, the interest paid on a business loan
(option for debt financing) is tax deductible, therefore decreasing the amount of taxable income and increasing overall ... Show more content on
Helpwriting.net ...
First up we have bonds, not to be mistaken with stock characteristics (which provide ownership in a company), a bond is essentially a loan from
the purchaser. "When a small business issues a bond, it is borrowing money. The person who purchases the bond loans your company money in
exchange for a return on his money (Johnston, 2016)." Just like a business loan (to be discussed next) the interest that is paid to these bond
holders is tax deductible and there is a specified amount of time before the amount is expected to be paid back. For instance, if you purchase a
$1000 bond with a 10/yr. maturity and 8% annual interest rate at its par value, you are expecting to get 8%/yr. on the $1000 bond issue (loan to
the company) with a return of principal (in this case $1000) at the end of the 10th year. Bond interest rates (aka the discount rate and/or required
return) "is the rate of interest prevailing in the market for bonds of the same risk and maturity (AAII Journal, 2008)" and "is the sum of all future
cash flows, discounted in value because they are not available today (AAII Journal, 2008)." The discount rate (interest rate/required return) is used to
calculate the future value of the bond sold today. When a bond sells for less than its par value (value of the bond), it is said to be selling at a
discount... when more than its par value, a premium. They have an inverse relationship with interest rates, which is a

Padgett Paper Products
CASE: PADGETT PAPER PRODUCTS COMPANY As result of inflation and the acquisition of its competitor, Tri
–State Tablet Company in 1996,
Padgett's financial needs have been risen to a permanent level rather than being merely seasonal in nature. The Company exceeded its bank credit
line of USD 5 million to USD 7.2 million. So Padgett Paper requested their bank, the Calson Trust Company for a higher credit limit of USD 8
million. The request was granted under internal guidance line of USD 8 million at prime. The objective is for the Management at the company's bank
must revise Padgett's debt structure in a mutually satisfactory manner that will minimize lender risk while increasing company value. The current
situation is the bank is now in bad ... Show more content on Helpwriting.net ...
But the Management was against this option due to restrictive covenants and interest rate uncertainty.
Another required option was to collateralize Assets. It would also increase the maturity schedule and reduce risk to bank and Company but restrict
management's flexibility. Another alternative would be to Mortgage General Purpose Buildings. It would have the same positive affect like the other
purposes. But the Management was against this alternative. Another possibility were the flat Dividends. These provide additional cash to shore up debt
situation, but the Owner will be unhappy with that, because it is not the focus and also this should not be necessary given the strong equity situation of
the company. Another important alternative would be the use in Canadian financing. Securing USD 1 million dollars in Canadian financing and 66% to
loan the value mortgage on the general purpose warehouse would be prudent in order to eliminate all remaining short– term debt. It will reduce risk and
untapped source leverage. The only problem would be that the U.S banking law and practice are not identical to Canadian practice. Another very
important thing is to increase cash flow. There exist different ways to improve cash flow such as reducing direct and indirect costs and the overhead
expenses. Improve systems for billing and collection, accelerate receivables. But in the

The Default Of A Borrower Essay
The default dilemma. The uncertain recourse upon default severely undermines the altruistic aspect of non–interest lending. Collecting defaulted funds
can prove to be time–consuming and difficult for creditors, as there exists an industry built upon the evasion of creditors. The stifling of funds to lend,
due to the default risk, could be circumvented in real estate transactions by securing the loans against real estate. Loan terms, such as lower
loan–to–value ratios, could help further protect the lenders, in the event of default, with market price shifting.
Inadequate underwriting. Often contributing to the default dilemma has been insufficient underwriting of the borrower. Establishing adequate
assessment of a borrower, coupled with focusing on borrowers with very good credit history, has been shown to lower default rates (Bhardwaj and
Sengupta, 2001). Crowdfunding sites, such as Lendingclub.com, periodically change their underwriting standards to remove the highest risk borrowers.
Revenue focus. Any lending model can only succeed with the injection of adequate capital. The focusing of stagnant funds on revenue effectively
removes funds that could be used for lending. The challenge will be to have the lender forego a profit yielding investment. Islamic scholars have
identified this predicament as a negative attribute associated with interest; it prevents the creation of interest–free loans as the lender expects to realize
a gain (Al–Fawzan, 2005). The

International Student Program For International Students
As an international student planning to study abroad, you should always evaluate the amount of money you'll need to complete your program in the
foreign country you plan to study.
Then you will have to research and apply for scholarships, school financial aid for international students from the school, and try and find money from
other sources, including family funds.
After exhausting these avenues, most international students still have a funding gap, and that 's where international student education loans are to be
considered.
What is an International Student Loan?
Federal education loans are well–known by US students studying in the USA, but they are unavailable to international students. Instead, international
students meet the criteria for international school loans, which is a specialized private education loans available to international students studying in
places like U.K, Australia or U.S.A.
International Student Loans are now a very realistic way to finance your education in U.K, Australia, Canada and United States of America. Loans are
very flexible, and can offer loans high enough to finish your entire education program, but, with extended repayment terms and reasonable interest rates
involved, you can afford the repayment of the loan when you graduate.
Co–Signers
All international students applying for loans must have a co–signer from that country you're applying the loan before you are allowed to apply. A
co–signer is legally obligated to pay back the loans

Essay on Be Our Guest Case
Be Our Guest
Be Our Guest, a Boston based company, is a rapidly growing equipment rental company with substantial seasonality in its revenues and profits. For
years, the company has been renting party supplies and furniture to caterers, event planners and hotels; it has also managed to grow gradually in a very
volatile and seasonal business. The founder, Stephen Lizio and co–owners Al Lovata and Simone Williamson found it difficult to fund daily operations
because of seasonal cash shortages. In 1996, the company had secured a $100,000 revolving line of credit at the prime rate plus 1.5%, and a $390,000
five–year loan at a fixed rate of 9.25%. By the end of 1997, the loan outstanding balance was reduced to $315,000 and the monthly ... Show more
In the short run, refinancing its existing debt to obtain better terms, such as lower interest rates, is also a likely way to quickly free up cash. The
company has very strong balance sheet and profitable growth, so it has plenty of bargaining power to negotiate a better deal with State Street,
especially in a banking climate where financing is plentiful. All of those covenant on State Street's loan, like prohibiting two consecutive quarters of
net losses and not incur a net loss for any fiscal year, suggest further that Be Our Guest may need to find another lender who will not be as strict with
its terms. Ultimately, the company must devise a plan for funding its growth long term. While refinanced bank loans may be adequate tofinance the
company, it should consider raising funds from selling equity. Proceeds from such a deal might be invested in a business that generates revenue
during Be Our Guest's slow seasons and eases the firm's reliance on credit for working capital. The way the company should approach the bank
should be in a way that would allow Be Our Guest be comfortable, specify its own terms and not let the bank tell them what to do. The company is in
good standing in terms of sales and revenues. Even though they have low seasons, the bank needs to accept the fact that this company is in seasonal
business and that profits come at different

Essay On Bad Credit Loans
Bad Credit Loans Are Here to Stay––Despite Tighter Lending Standards Bad Credit Loans Are Here to Stay––Despite Tighter Lending Standards
Bad credit loans seem likely to continue despite tighter lending standards and increased federal and state regulations. The debate over regulating the
financial industry with tough reforms, limits on interest rates and other requirements has seesawed back and forth. Democrats created the Consumer
Financial Protection Bureau to regulate the financial industry after mismanagement became apparent during the mortgage crises of 2008–2009.
Unfortunately, Republicans charged that the cure was worse than the disease, and President Trump has vowed to abolish the CFPB or limit its power to
regulate financial ... Show more content on Helpwriting.net ...
The Criteria that Banks Use to Approve Personal Loans
Bad credit loans online come in many forms. Lenders offer loans in varying amounts with different standards for approval. Getting approved by
traditional banks and lenders is becoming increasingly difficult even for people with high incomes and good credit scores, so alternative lenders are
becoming more popular with rank–and–file borrowers of all financial backgrounds. According to an article posted at Bankrate.com, getting approved
for a bank loan requires the followuing qualifications:
Source of Income
The higher your income, the more likely you'll be approved for a personal loan. Even more important is your debt–to–income ratio. A low percentage
increases your chances of getting approved. It also helps if you have unused credit available on your account's––maxed–out credit is a red flag to
traditional loan officers. College Education and Career Status
Loan approvals from traditional lenders often go to people who have professional careers and have demonstrated job stability. Unfortunately, people
without college educations or educations from community and local colleges don't get as much consideration as those who attend highly respected
institutions. Good Credit History
A good credit history doesn't just involve paying your debts on time. You need a history of paying your

Predatory Lenders And The Lenders
Predatory lenders prey on consumers that are in a position so desperate that bargaining for a better deal becomes impossible. Lenders tend to set up in
low income areas where education is low and desperation runs high. They can then use their position to impose astronomical origination fees and
interest rates on the consumer. State and Federal governments have created laws to limit these practices; which focus on fees, interest and the method
by which the loans were formed. Even though consumers are protected in the subprime loan market, the loans are still giving the lender more
advantages than a prime market loan. The following will be focusing on the most notorious of predatory loans, the payday loan. First payday loans will
be defined, ... Show more content on Helpwriting.net ...
The loans are marketed in low income areas where it is likely that the borrower is of the working poor class. These borrowers have run out of
money and can't cover their expenses with their current paycheck. They go to a neighborhood check cashing store and apply for a payday loan to
cover them for the week Often when the loan is due they can't afford to repay the balance and are hit by rapidly accruing interest. Most borrowers end
up "rolling up" their current loan into a new loan as they spiral deeper and deeper into debt. This scenario plays out over and over and it is simply
irresponsible lending by its very nature. The lenders are not acting dutifully by ensuring that the lender has the means to repay the loan. So as the fees
mount up the debtor ends up making payments which don't even touch their principle balance. This cycle continues until inevitable point of default.
After default
At this point the debtor has defaulted, and the lender has collected various fees and accrued even more fees because now the loan is in default. The
lender will add as many fees as they can to raise the amount owed, because now it is time to sell the balance to a collections agency. Collections
agencies purchase these defaulted accounts for a percentage of their balance. The sale price of these accounts depends upon their age, the fresher the
debt, the more costly. Generally debt that is less than 3 years old is sold at 7.9

The IMF : The Downfall Of Russia's Economic Crisis
Following the fall of the soviet union in 1991, the Russian economy entered a downward spiral. The IMF was at the ready and loaning Russia billions
of dollars in an attempt to prevent a total collapse of it's economy. The leaders of the IMF undoubtedly understood that the leaders of Russia were not
the most trustworthy people to loan such money to. However, their economy was collapsing and if allowed to fail, the rest of the world would surly
suffer the consequences.
"The IMF had approved an $11 billion package for Russia in 1996. On July 13, the IMF Board announced 'in principle' a $22.5 billion dollar
international bailout, which included the previously committed funding from the IMF as well as funds from the World Bank and the ... Show more
"In its rush to bail out Russia, the IMF made three major blunders.
First, the IMF conducted an inadequate risk assessment. This is something that every banker undertakes, even when considering disbursing a much
smaller loan. The IMF has overestimated the growth rate of Russia's GDP every year since 1994.
Second, the IMF committed the funds, betting that the Russian government would put in place certain policies. These turned out to be policies that
Russian leaders either could not or would not implement. This is equivalent to a banker misreading the business viability of a loan applicant.
Third, the IMF made deals with individuals, such as former Prime Minister Sergei Kirienko and debt negotiator Anatoly Chubais, who soon
disappeared from the political scene. It should have been clear to IMF officials that the conditions attached to the July 1998 package would never make
it through the anti–reform State Duma (the lower house of Parliament) and that this could cost Kirienko and Chubais their jobs. This is comparable to
a large company losing its top management immediately after a bank loan is made. (Cohen, 1998)"
The IMF was in a rush to bail out Russia, as it should have been because Russia's problems were becoming the world's problems. These were very
fluid and chaotic times where today's prudent decision is tomorrows bad decision because of unforeseen circumstances. A looming problem that The
IMF is asking Russia to solve is asking a communist people to

Course Project 1
Bus 379 Course Project March 31, 2013 Task 1 1. National First with an APR of 3.25%(Prime Rate) +6.75%=10% The ERA=(1+10%/2)^2– 1=
10.25% Regions Best 13.17 APR compounded monthly. The ERA = (1+13.17%/12)^12– 1= 13.99% 2. I would recommend National First Bank, the
ERA with NFB is 10.25% and the ERA with Regions Best is 13.99%. National First Bank is calculated semiannually so it is only twice a year but
Regions Best is compounded monthly. The APR with National Best is low even if it is Prime. 3. The loan amount is $6,950,000, interest rate is 8.6%
APR over 5 years. To do the calculation we work with (loan amount)*(interest rate)/(years) N=60 I=0.7167 PV= 6,950,000 Payment =x The monthly
payment for... Show more content on Helpwriting.net ...
Most of the time the price of the preferred dividends is higher than the common stock because there is more risk for investors but there is also more
payoff if it does well. 4. 1.50 * (1+10%)=1.65 1.65 / (10%–1%)= $18.33 IF the required rate of return increases from 8.1% to 10% then the current
share price of common stock with decrease from $21.41 to $18.33. As the price of the stock increases this can be riskier for the investor. But with
higher risk the returns should be higher as well with dividends. If the dividends are higher this can boost the confidence of others to buy more stocks
as there are good returns with the company. Task 3 1. Annual Rate = 7.5% Current price of bond = $1062 Term 20 years Par value of bond $1000
Annual interest $75.00 Semi–annual interest $37.50 The coupon rate AirJet Parts sets on new bonds would be 6.92%2. The YTM rate is the rate of
return that could be earned if held until the maturity date. The coupon rate is usually a fixed and is the known rate of the bond. 3. The credit risk on
a bond is the chances that the company will default on the bond. The amount the investor makes is lower. Inflation rate risk, when inflation goes up,
the price of the bond usually goes down. Interest rate risk the price of the bonds changes because of the increase and decrease of the interest rates. 4.
File quarterly

The Crisis And Its Effects On The Economy Essay
It all began when Mexico announced to the world that they will not be able to meet their sovereign debt obligation in the summer of 1982. With
the rise of large loans to the less developed countries (mainly Latin American countries such as Mexico, Argentina, and Brazil) in the 1970s, this
period quickly became to be known as the "lost decade" as many creditor countries were greatly affected by a series of defaults from the debtor
countries. In this paper, we will discuss the events that led up to the defaults and the impacts of the crisis. We will also look at how the crisis was
resolved and what lessons we can learn from the crisis to prevent it from happening again.
The crisis can be traced back to the oil price shocks after the Yom Kippur War of 1973. Yom Kippur War, also known as the Arab
–Israeli War was a
war fought by the coalition of Arab states led by Egypt and Syria against Israel. During the war, via "Operation Nickel Grass", the United States backed
up Israel with delivery of weapons and supplies. The Arab states within the OPEC (Organization of Petroleum Exporting) countries were not impressed
by the United States support for their enemies. In retaliation, they declared a complete oil embargo on the United States and restrictions on their allies.
Thus, oil price began to skyrocket and the OPEC countries were racking in massive profits. The problem is that these countries cannot deposit their US
dollar denominated financial holdings in the United States since

Private Student Loan Refinancing Case Study
American students today owe over $1.45 trillion in outstanding student loans and interest rates are near historical lows. As a result, a host of new
companies have sprung up over the last few years offering student loan refinancing. Private lenders like Earnest, CommonBond, and the market leader,
SoFi, all pitch the benefits of refinancing at lower market–based interest rates. Their TV ads show happy millennial professionals saving over $20,000
by refinancing.
It sounds amazing, doesn't it?
But the truth is less promising. In fact, starting this year the entire business model of private student loan refinancing may prove to be less viable.
There are two primary reasons for this. First, only a tiny percentage of all student loan borrowers can reap significant savings from private loan
refinancing. The vast majority of borrowers either don't qualify ... Show more content on Helpwriting.net ...
Students who have borrowed $100,000 or more often have done so to attain postgraduate or professional degrees. Consumer finance site NerdWallet
indicates that the average approved borrower at SoFi has an annual income of $130,000 and an average credit score of 766. From this we can infer
what kind of borrowers fit SoFi's profile: lawyers, doctors, MBAs, and other professionals who are high earners.
It turns out that private lenders are targeting a very small slice of student loan borrowers. To put things in perspective, as of September 2017, only
6.9% of all working professionals make $130,000 or more per year.
But what about the average student loan borrower? Going back to the calculator, an undergraduate degree borrower with $30,000 in loans who
refinances from 6% to 4.5% would only save $22 a month.
In 2013, the government changed the way it set interest rates for federal student loans. It started indexing student loan rates to the 10–year U.S.
Treasury note. Current year Stafford loans have a rate of only

Pros And Cons Of Pole Chainsaw
Sun Joe SWJ800E 8 Inch 6.5 Amp Telescoping Electric Pole Chain Saw with Automatic Chain Lubrication System: Product Review
If you are looking for a chainsaw that is specifically meant for hard to reach branches that are hanging from your trees, it is best to purchase a pole
chainsaw. However, what should you look for in a pole saw?
Basically, one consideration that you should always consider with a pole chainsaw is your capacity to balance and carry it while using it.
Sun Joe SWJ800E 8 Inch 6.5 Amp Telescoping Electric Pole Chain Saw with Automatic Chain Lubrication System: The Best, Cheapest, and Lightest
Pole Chainsaw in the Market
Snow Joe + Sun Joe, the company behind Sun Joe SWJ800E, is a relatively small player in the chainsaw production ... Show more content on
Helpwriting.net ...
It is a genuinely great product and if there is any problem with this unit, it is nothing that can't be easily fixed on your own. The two year full
warranty also guarantees value for your money, since not every chainsaw manufacturer will be giving you the same benefit. The confidence of Sun
Joe in their unit is enough reason for me to also be confident in their product. Moreover, there are not a lot of choices in the market for pole chain
saw, so if you find yourself needing one, I hope you consider this model and I hope that the experience of owning this unit will be as good for you as it
was as great for me and our entire household.
If you would like to get your hand on this pole chainsaw, you can check out more details, reviews, and comments of the users of Sun Joe SWJ800E 8
Inch 6.5 Amp Telescoping Electric Pole Chain Saw with Automatic Chain Lubrication System by clicking this link:

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

Subprime Lending
Defining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster
subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low–income borrowers; extending
or obtaining a subprime loan (Webster, 2012). Subprimemortgage loans are loans given to people with a low credit score. Subprime borrowers
normally don't qualify for prime loans or prime lending. According to Jennings, the subprime mortgage market is defined to include those borrowers
with a FICO (Fair Isaac Co.) score below 570 (Jennings, 2012, p. 434).
The American Dream Home ownership has always been a big part of the "American Dream." ... Show more content on Helpwriting.net ...
The vast majority of subprime loans are now securitized; leading to claims that securitization facilitates predatory lending and should actively police
lenders. New standards to protect borrowers against unfair practices were launched 1 July including requirements to ensure they are not lured into
credit contracts they cannot afford to repay. The standards include provisions to stop predatory lenders from exploitative practices such as using
household items as security for cash loans (Engel, K. & McCoy, 2007).
Lender and Incentives One has to wonder, why were subprime loans pitched to consumers? They weren't pushed for altruistic purposes; not from the
kindness of the heart. The results were inevitable. According to the readings, subprime loans ended with the same result. They were a risk for the
consumer as well as the bank backing the loan. There had to be some incentive for the banks; some benefit that is reaped. In this case, it was a
monetary benefit.
Yield–spread premiums is what lenders call them. Consumer groups call them legal kickbacks. YSPs are the cash that mortgage brokers or lenders get
for steering a borrower into a home loan with a higher interest rate (Center for Responsible Lending, Yield Spread Premiums (YSPS).
However, the Federal Reserve stepped in and regulated these kickbacks.
New rules issued by the Federal Reserve Board mean that YSPs are no longer legal. The Fed rules ban brokers and loan officers from

The Benefits Of College And The Costs Of Attendance
Student Loan Crisis
Nearly thirty–nine million people residing in the United States hold student debt, coming to approximately $1 billion. Naturally, other forms of
consumer credit declined in the recent years, most notable during the recession, and non–surprisingly, student debt continued to rise. Due to this,
student loans are now, next to mortgages, the largest source of debt, outstripping credit cards and auto loans.
I say that there exists a debt crisis, and a repayment crisis. Student's are expected to repay outrageous amounts of debt when their incomes are at their
most lowest and fickle. There is a discrepancy between the benefits of college and the costs of attendance. Ironically, this discrepancy is the same
motivation for even providing student loans to begin with. It's fair to say that education is an investment. Education demands costs to paid in the
present in return for potential benefits in the future. While students are in school, expenses include typical costs such as tuition, books, and sometimes
rent. Potential benefits for the future typically include access to higher earnings. To pay the current costs of their education, most students need
liquidity. Typically in a business deal, to be borrowers could put up collateral in order to pay for a promising investment. This collateral could include
any goods used, typically buildings or even tools of trade. Almost similarly, homeowners use their home as collateral when they take out a mortgage.
Students are

Foreclosure Crisis: A Lack of Knowledge
The foreclosure crisis all boils down to lack of knowledge. Real Estate as any other investment entails risk and uncertainty. No one can foretell how
much return an investment will make, or even if there will be a return at all. Risk is only matched by the size of the investment, where higher risks
are taken for investments that have a higher possible return. That said, as Real Estate will undoubtedly be the largest investment for most of the
population, it will definitely have the highest level of risk for most people in the population. Risk will be inherent in any investment as no one can be
certain about the future; however risk is maximized by ignorance and minimized by knowledge. It is ignorance that has led to ill–advised home... Show
more content on Helpwriting.net ...
Such payment structures lead to families overestimating what they could actually afford and only finding that reality of affordability had floated
beyond their reach in foreclosure. The fundamental principle that must be realized is that foreclosure only happens when one cannot make timely
monthly payments. The monthly payment is largest focal point of affordability in real estate. One must answer this: "Can I afford the monthly payment
on this loan for the duration of the assigned term even when the loan adjusts?" If the answer is yes, then that will reduce the risk of foreclosure. Many
people during the crisis tried to squeeze into loans that eventually adjusted above their affordability level. Some tried to refinance finding that since the
value of their home decreased, they were stuck with their current payment. However, if they understood again, personal finance, and the structure of
debt, they would understand that a high adjustment in interest rate would push them into a payment that was well above their means.
Another topic to that should be discussed is how to budget and estimate a reasonable portion of income that should be devoted to living expenses. With
budget one can track "where the money is going." As with the government we need to track

Margin Lending And How It Operates
Margin Lending and how it operates in the Market:
An analysis of the concept of margin lending indicates that it is a process that allows people in borrowing money from lending institutions and the
money as borrowed is utilised for the purpose of making investment. The credit as provided by the lending institution is based on assets as hold by
the borrower and they are required to be pledged as collateral on the loan. The main purpose of borrowing such margin money is mainly to accomplish
the investment purpose of the organisation. It is therefore regarded as an investment strategy which allows for borrowing money so that it can be
invested (Margin Lending, 2015). This process of margin lending money works in a procedural manner. In this... Show more content on Helpwriting.net
...
The profit or loss made from the securities is adjusted to this margin lending account and once the money is depleted, it needs to be refilled with
additional cash. This is the way or process in which margin money lending work (How does margin lending money work? 2015).
Major Operators in the Australian Market:
An analysis of the Australian market in particular suggests that there are large numbers of margin lending money provider and they operates in
Australia with the purpose of meeting out the margin money requirements of people at large. The investors requiring margin money can get them
easily through the consideration of the various major operators throughout Australia. An analysis indicates that the major margin lending operator
based in Australia are classified as Australian Securities and Investment Commission (ASIC) as this particular regulatory authority accounts for
controlling the margin lending regime in Australia (Margin Lending, 2015). An analysis of the margin money lending regime as controlled by ASIC
indicates that the regulation of margin lending is performed as per Corporation Legislation Amendment Act which commented on 1st January 2010,
and it is regarded as a part of government's national regulation of consumer credit. The fiscal condition that the major operator imposes on the new
entrants or consumers can be identified in the form of

The Eu And The European Crisis
Positions and Interests
Greece knew they were in trouble and they had to receive money from an outside source to keep going as a country and also be able to pay back
their creditors. However, Greece was unsure of how to. Greece was interested in paying their creditors back but were not interested in all of the
austerity cuts the EU wanted Greece to implement because these cuts would upset some of Greece's citizens. The EU's top priority from these
negotiations was to make sure Greece would reduce the amount of debt they would be taking on each year. The way the EU was going to make this
happen was by making sure Greece implemented austerity cuts. The IMF was not really interested in making Greece implement austerity cuts. (IMF
and EU ... Show more content on Helpwriting.net ...
Also with the lower debt, this would allow Greece to get closer in meeting the qualifications IMF has for loaning money to countries.(IMF is
blackmailing the EU article) IMF believes, if the debt is not reduced, Greece will default once again on their loans. However, the EU doesn't want to
write off any of Greece's debt because they want to be paid back on their loans. The EU's position is, the tax payers of the EU has loaned the Greek's
this money and are expected to receive their money back. (IMF and EU Loggerheads article) One way the IMF and the EU could bridge this difference
is the EU writing part of Greece's debt off and the IMF could write a portion of Greece's debt off.
Therefore, the IMF and EU agreed to lend Greece additional aid on the condition that Greece accepted the austerity measures. Regardless of the
referendum vote, Prime Minister Tsipras chose to go against the results and accept the terms of the bailout. The reason that he did this is because he
was worried about the future of Greece if they were to actually leave the EU, and did not want to take that risk. Even if Greece left the EU, it would
not change the amount of debt left outstanding. However, by not listening to what his fellow Greeks requested him to do, and also putting the EU
bailout offer to a referendum vote, Prime Minister Tsipras broke a lot of trust with his fellow Greeks, EU countries, and the IMF. One country

Beano Case Study
Amanda Dundee
BEANO CASE QUESTIONS
1. Harris's partnership proposal is not fair for Smith. He completely revised the original investment amount and loan deal that they had original
discussed. He is asking to raise his share to 49%, which would pose many problems for Smith in the control of the company. Giving Harris that high of
a stake in the franchise would be giving him a lot more money, and half of the control. Smith would be dependent on Harris, and if something
suddenly happened to him, or the deal didn't end up going through, then Smith would be out of business. His SCORE counselor recommended that he
does not give up more than 20% share to one investor, and this is above and beyond that. He is also asking to be paid back ... Show more content on
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Once he gets past those first few years, he will start seeing more of a profit, with some stores even reaching $500,000 in sales, and they are number
three in market position in sales. The franchisee program comes with a lot of perks that will make it much easier for Smith to be successful in his
ventures, and the company has a solid competitive advantage with specifics that include superior ingredients, new product and market development,
and environmentally conscious behavior.
3. I would not recommend Smith to go into a partnership with Harris. He does not seem very fair in his projections of what his is putting into the
company, and seems to be attempting to connive Smith into giving up a ton of his control for not a great amount of return. His financials expectations
are completely unfair and not warranted. Smith will be left with an extremely low salary, and Harris will be making 22 times the amount of his
investment in a short period of time. While Smith wants to get started as soon as possible on this first franchise due to his financial problems, if he
chooses to go with Harris he could be getting himself into much deeper trouble. The franchise itself seems to be a decent option, with its great location,
franchise support, and competitive advantage, but Smith should wait to find a better partner. This business will not succeed if the two owners do not
get along. It would ruin their entire

The Housing Disaster And Subsequent Great Recession Of 2007
The Housing Disaster and subsequent Great Recession of 2007 were predicted by several well–known Economists, although it still caught a majority
of the Country and World by surprise! I wasn't prepared for this economic shock either, as I had just finished real estate school and passed my State
and National licensing exams during the previous year. It was a tough start to a real estate business but proved valuable in the lessons I learned during
those next several years.
Although I was fairly "green" to the business, I could recognize some loan programs and practices that sent chills down my spine and raised the hair
on the back of my neck. What were worst of these programs and practices? The overall consensus agrees that risky lending practices and sub–prime
mortgages were key influences in the housing disaster. Inflated market and sales prices also played an important role.
I am reminded of one such experience. A good friend of mine called me one evening, during the late summer of 2006. He was considering refinancing
his current home so he could possibly purchase a second investment home. He explained that his current loan officer had offered a "great" loan
package that would significantly reduce his monthly payments. RED FLAG NUMBER ONE! After reviewing the written information on this loan
product, I showed him where he would be paying "affordable" interest only payments for two years. His monthly payment would increase dramatically
after the third year, as he would be

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