The Foreclosure Outbreak: Causes and Consequences

The Foreclosure Outbreak
Introduction
Foreclosure has become an outbreak affecting an entire nation. Realtytrac just reported in the month of April 2011 that one in every 593 housing
units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida, Michigan and Nevada
continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a casualty to a
foreclosure, short sale or even bankruptcy is secured as collateral for the lender holding the promissory note. The consequences tend to come at a cost
for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the affected ... Show more content
on Helpwriting.net ...
Treasury Index, the Cost–of–Funds Index (COFI) or the London Interbank Offered Rate (LIBOR) plus a margin. The promissory note will state the
caps or maximum/minimum amount the rate can adjust during the adjustment period and over the life of the loan. This can ultimately increase the
interest rate resulting in an increase in monthly payment. As a result, the borrower experiences payment shock and cannot afford to make the required
payment.
b) Balloon Mortgage: This loan is not fully amortizing. Instead the entire loan balance is due on the maturity date. An example of a balloon mortgage
occurs when the payment is amortized over a 30 year period, but balloons in 10 years making the remaining unpaid principal balance due in 10 years.
At the end of the balloon period, the borrower must find alternative financing to refinance the remaining balance. The terms of the refinance could
potentially be less favorable or even worse; the borrower cannot obtain new financing.
c) Interest–Only Mortgage: The required loan payment just covers the interest that is owed; therefore, the payments are not reducing the principal
balance of the mortgage loan. This mortgage product is ideal for the short–term investor. Unfortunately, this type of loan was used to qualify individuals
for homes that they otherwise may not have qualified for based on a traditional mortgage product such as a 30 year fixed
... Get more on HelpWriting.net ...

The Real Estate Market Of 2008 Is Notorious For Sparking...
The real estate market in 2008 is notorious for sparking one of the largest housing bubbles in history. In order to understand the housing market during
the bubble you need to recognize the events that caused it. This was simply an economical failure from the hands of some of the most well–known
financial institutions and the Government. Going back to 1997 to 2006, if you take a look at the Case–Shiller Home Price Index (the leading indicator
for the US housing market residential prices), you will discover a rise in nominal home prices of 188%. Although there is not a lot of consensus that
uncovers what sparked the housing bubble, countless people have spoken their opinion in regards to this: misguided monetary policy; government
policies pushing home ownership, consumer speculation of rising home prices, and lower housing supply. These examples can't fully explain the
crash, but they can provide insight as to what may have happened or at least contributed to it. This article goes into depth on some of the explanations
to the housing bubble and how the burst of it eventually led to the credit crisis which sparked the entire recession in 2008. Starting back in 1997 when
the residential prices began to appreciate into 2003, the rising home prices can be examined through economic fundamentals. These fundamentals
explain the price of buying a home in relation to rentals and interest rates – meaning that the housing market was not overvalued. Post 2003–2004, the

Subprime Mortgages And The Mortgage Crisis
Mortgage securities are crucial when it comes to the availability and cost of housing in the United States. This paper will analyze the mortgage
securities market, and how the market functions. It will also focus on the subprime mortgages created from 2000 to 2006. Suggestions will be
presented that would protect against the types of problems experienced in the mortgage securities market from 2006 through 2009.
Mortgage securities are considered an ownership interest in mortgage loans made by mortgage companies, commercial banks and other private entities
to finance the borrower purchase home or other property. Mortgage securities were created when the servicers pool loans for sale to investors. The
investors receive payments of principal and interest when mortgage loans are paid off by homeowners.
Investors in the secondary market often purchase mortgage securities after they are issued. Large institutions make investments in mortgage securities
when they are issues. Other dealers in a secondary market sometimes redistribute securities.
Mortgage securities are issued by the Government National Mortgage Association (Ginnie Mae), or by government–sponsored enterprises (GSEs) such
as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (Freddie Mac, 2002).
Mortgage securities are often priced at a higher yield that corporate or Treasury bonds. The opportunities for profit are also greater. Mortgage

Lessons Of Resilience : What We Can Learn From The...
Lessons in Resilience: What We Can Learn from the Subprime Mortgage Crisis Like all financial markets, the United States housing market is
characterized by its cyclical nature. Markets have ups and downs, peaks and troughs, and without variation, the housing market would not contribute to
economic activity in the way that it does. Still, while fluctuations are a necessary and often beneficial truth, housing disasters and market crashes are
crises that should and can be avoided with proper foresight. The 2008 housing market crash had consequences for the consumer and corporate sectors
as well as for the national government's international reputation. Through consumer education, corporate responsibility, and government regulation and
safeguards, the future housing market can serve to support, rather than hinder, the the United States and international economy. Consumers certainly
seemed to take the brunt of the losses from the subprime mortgage crisis. By the end of 2008 one in six homeowner's properties were in negative
equity, and many proprietors saw defaulting on payments as the only solution. The crisis on the whole only added to consumers' financial dilemmas, as
the already weakening economy and job market meant no one could afford the inflated prices. Some lost their businesses, some refinanced and
borrowed themselves into unforgivable holes of debt, and many aging homeowners found themselves unable to keep up with ever–inflating mortgage
payments while only supported

Housing Bubble
According to Wikipedia a housing bubble is a type of economic bubble that occurs periodically in local or global real estate markets. It is
characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline. Four years into
the housing bubble downturn, much of the country remains hopelessly confused about what happened, why it happened and who is to blame. In my
research paper I will try and demonstrate what a housing bubble is, some of the reasons for the bubble, was it preventable, how it kept growing, how it
burst and how it has affected our economy. By definition a housing bubble is a temporary condition caused by unjustified speculation in the housing...
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Other scholars have emphasized the sharp deterioration in lending standards as contributing to the rise in housing prices as well as the importance of
changes to the mortgage market institutional structure. Other explanations of the bubble have been demand side explanations, meaning that the bubble
was caused by excessive consumer demand for housing. One leading explanation argues that the bubble was the result of irrational demand encouraged
by a belief that housing prices could only move upwards. Other research points to the fundamentals of housing markets, particularly population growth,
placing upward pressures on housing prices in markets with inelastic housing supply, thereby explaining some of the geographic variation in the
housing bubble. None of these explanations, however, is capable of fully explaining the housing bubble. From 1997 to 2006 nominal U.S. housing
prices rose 188%. By mid–2009, however, housing prices had fallen by 33% from peak. As the United States attempts to rebuild its housing п¬Ѓnance
system, it is of paramount importance to understand what caused the housing bubble. Until we understand how and why the housing bubble occurred,
we cannot be certain that a reconstructed housing п¬Ѓnance system will not again produce such a devastating bubble. As you can see there are
numerous theories and explanations for the bubble. Without getting too deep

Capstone Project Finance (Final Project)
CAPSTONE PROJECT
Project Title: APPLICABLE FINANCIAL POLICIES CHANGES THAT CAN BE USED TO ENCOURAGING HOUSE AND HOME OWNERSHIP
IN MICHIGAN
Submitted by:
Submitted to University MBA/MS Program [list one]
Capstone Mentor: [name]
For University Use Date Received: ______________________________________________ Reviewed by:
_______________________________________________
Approved/Disapproved: ______________________________________________ Signature: ______________________________________________
Date: ______________________________________________ Comments: ______________________________________________ ... Show more
content on Helpwriting.net ...
ws in the Housing Finance System22 2.4 The Federal Housing Finance Agency (FHFA)23 History of FHFA24 Conservatorship of Freddie Mac and
Fannie Mae24 Chapter 3: Description of the Research Design Used26 3.1 Research Method and Design Appropriateness26 3.1 Population26 3.2
Informed Consent26 3.3 Confidentiality27 3.4 Data Collection27 3.5 Instrumentation28 Open and Closed Ended Questionnaires28 Interviews29
Reading29 3.6 Validity and Reliability30 Internal validity30 External validity30 Reliability30 3.7 Data Analysis31 Chapter 4: The Results and Findings
of the Project32 Chapter 5: Discussion of Results and Findings33 Chapter 6: Conclusion and Recommendations37 Chapter 7: References38 Chapter 8:
Appendices41 Appendix 1: CFED Assets & Opportunity Scorecard 2012, Michigan State: Profile41 Appendix 2: Housing Financial Policy
Changes in Michigan Questionnaire42 Appendix 3: Housing Financial Policy Changes in Michigan Interview Questions44
List of Abbreviations
CFED – Corporation for Enterprise Development
FHA – The Federal Housing Administration

FHFA– Federal Housing Finance Agency FHFB – Federal Housing Finance Board
GSEs –Government Sponsored Enterprises
HUD – Department of Housing and Urban Development
IRS – The Internal Revenue Service
LTV – Loan–to–Value Ratios
MBS – Mortgage–Backed Securities
MCC – Michigan Chamber of Commerce
MMI – Annual Mutual Mortgage Insurance

MoodyвЂ™s Credit Ratings and the Subprime Mortgage Meltdown...
Moody's Credit Ratings and the Subprime Mortgage Meltdown
Table of Contents
Introduction.......................................................3
Background........................................................4–10
Analysis............................................................10–12
Conclusion.........................................................12–13
References..........................................................14
In the early–2000s, Moody's, one of the leading credit rating agencies in the world, evaluated thousands of bonds backed by so–called "subprime"
residential mortgages–home loans made to those with both low incomes and poor credit scores. When housing prices began to fall in 2006, the value
of these bonds disintegrated, and Moody's was compelled to downgrade them significantly. In late 2008, several commercial banks, investment banks,
and mortgage lenders that had been ... Show more content on Helpwriting.net ...
Rating agencies also had a strong motivation to compete for market share by catering to their clients. In 2000, Moody's became an independent,
publicly owned firm after being released by its parent company, Dun & Bradstreet. This placed even more pressure on Moody's managers to
increase revenues and improve their shareholder's returns. (Lawrence, p. 456) From this point on, we begin to see the credit rating agencies drastically
underestimate the risks of mortgage–backed securities in a selfish attempt to further their own bottom lines. The birth of structured finance came from
new techniques of quantitative analysis used by Wall Street investment banks, and suddenly, Moody's was not just evaluating corporate, municipal,
state and federal government bonds. Structured finance consisted of combining income–producing assets–everything from conventional corporate
bonds to credit card debt, home mortgages, franchise payments, and auto loans–into pools and selling shares in the pool to investors. (Lawrence, p. 456)
A structured finance product that became popular in the early 2000s was the residential mortgage–backed security (RMBS). An RMBS started with a
lender–a bank like Washington Mutual or a mortgage company like Countrywide Financial–that made home loans to individual borrowers. The lender

would then bundle several thousand of these loans and sell them to a Wall Street investment bank such as Lehman Brothers or Merril Lynch. The Wall

Fannie And Freddie Case Analysis
What have to we do by way of Fannie and Freddie?
By means of the federal administration support almost each home loan completed in the nation nowadays, approximately everybody agree so as to the
present level of hold is indefensible in the extended run, and confidential resources will ultimately have to take for granted extra danger in the credit
marketplace. That foliage two significant question before policymakers nowadays:
What kinds of attendance have to the central administration contained in the prospect housing marketplace
How do we changeover sensibly to this new scheme of housing finance?
Because the conservatorship of Fannie and Freddie started, dozens of encouragement group, academic, and business stakeholders have accessible
probable answer to this question. The irresistible middle–of–the–road of these optional plans have the same opinion that a number of form of
government hold up is essential to make certain a constant housing market and to preserve the 30 year fixed rate loan.
In January 2011 the Housing Loans Finance operational assembly, a progressive group of accommodation business expert, reasonably priced
accommodation advocate and leading academic sponsor by the Centre for American development, unconfined its map for sensibly zigzag downwards
Fannie Mae and Freddie ... Show more content on Helpwriting.net ...
It was the completely personal segment of the marketplace on the other hand, that could be issue of the millions of foreclosures and bring downwards
the complete financial organization. If this illustrate the incorrect session on or after the monetary catastrophe and unexpectedly pull out the
administration from credit finance, it will show the way to a pointed lessening in the ease of use of home loan, wounding off right of entry to mortgage
finance for the middle

Houston Fha Loan Essay
Overview of Houston FHA loans
The first question on your mind as a potential homeowner is how to finance the acquisition of a home. Thankfully, there are different ways of financing
a home acquisition and mortgages remain one of the most popular options. However, there are different types of mortgage programs offered by different
mortgage providers, with one of the most common being FHA loans.
What is Houston FHA loan?
For a resident of Houston or intending homebuyer, it only makes sense to ask about Houston FHA loans. For those that do not know, Houston FHA
loans are mortgages made by private lending institutions where the Federal Housing Administration in the case of default by the borrower insures
lenders.
For some history, the ... Show more content on Helpwriting.net ...
This could make it difficult to get a mortgage approval.
While FHA–insured loans allow people with relatively bad credit to purchase homes using the program, persons that have had foreclosure or
bankruptcy can only get an FHA loan two years after bankruptcy and at least three years after a foreclosure.
What is the required down payment?
FHA loans require very little down payment, only 3.5% of the purchase price. However, the fact is that FHA loans require only three percent down. It
gets even better with FHA loans as the payment can be in the form of a gift from a charitable organization or family member. This is unlike other
types of loans that do not allow gifts for down payments.
Am I to pay closing costs in addition to the down payment?
It is usually possible for you to finance closing costs. However, this is usually left to the discretion of the borrower after talking with the lending

institution or broker as the case may be.
How good are the interest rates?
One of the major features and attractions of FHA–insured loans are the highly competitive interest rates, especially when compared with other
mortgage loan programs. However, it is worth noting that the interest rates charged on loans vary depending on the lender. It is therefore important for
borrowers to shop around and compare rates before settling for a particular lender.
Can FHA loans be used for home refinancing?
Yes, FHA loans can be used for

The Federal Emergency Management Agency
As the state of our currently understood weather patterns and global climate become more understood, in context, with great concern, the federal
government has placed an ever larger portion of its national focus on promoting a more efficient response to such concern via disaster mitigation and
management with the Federal Emergency Management Agency. A historical extension of the federal government for which is principle utilized for
disaster aid and response, this agency is as much a direct extension of the current presidential administration as it is a crisis agency for social good.
This simple description clearly suggests a detailed understanding following the Hurricane Katrina disaster that left the Gulf Coast and New Orleans, in
particular, as a study in social failure. But as an agency emboldened by an administration concerned with climate change, FEMA has shown as an agent
for change in how it addresses and refocuses states in preparation for the inevitable future climate change.
In its current form, the federal emergency management agency, commonly known as FEMA, represents a sizable federal agency employing
approximately 7500 people located throughout the country, and among 10 regional field offices. Such extensions include national emergency training
centers, and a domestic preparedness–training center. FEMA has associations with partnerships consisting of local, state, tribal, and other relevant
federal agencies. FEMA associations can extend to private and

Global Effects Of Global Effects On The World Economy
Global Effects
The 2008 financial crisis consequences strongly affected the world, from strong economies in Europe to slow growth developing countries. The
world's economy suffered a downfall that took around 2 years to recover.
Europe was one of the most affected regions in the world. Government interventions, capital injections and bailouts surged in the region after the US
financial market crash. The European market has affected so hard that the impact of the US financial crisis developed into a Eurozone crisis.
One of the reasons the Eurozone was crushed is that the European banking system failed. Mainly because the European banks recklessly borrowed
money in American markets to buy risky securities, those risky securities defaulted ... Show more content on Helpwriting.net ...
Being oil producing countries, the Middle East region had a strong currency and a stable economy due to strong oil prices. Also, helped by direct
foreign investment and aid from other Arab countries, the Arab region was able to maintain strong during the crisis.
Asian countries economies suffered a slow economic growth during 2008 and 2009 mainly because being export economies, and the United States
netting almost 1/3 of world's consumption. East Asia was the most affected part of Asia, specifically Singapore and Japan. Singapore GDP's
dropped from a 14% annual growth rate in 2008 to a 1.1% in 2009 and Japan annual growth rate declined an astonishing 15.2% during the first quarter
of 2009. As in the USA, Asia economy have had a strong recovering road but has been positively affected by the USA uprising economy. (Adbi.org)
United States
The USA financial system suffered one if it's hardest crisis in 2008. According to specialists the average house hold in USA lost an average of
5,800$ in income during the recession peak. The cost to the Federal government to stop the crisis was around 2,000$ on average for every household
in America, and the combined of the decreasing costs of stock values and housing values was around 100,000$ average for every household in America.
(pewtrusts.org)
Gross Domestic Product: The USA gross domestic product suffered it highest decrease during the recession in the 4 quarter of

Essay on FDR and the New Deal
FDR and the New Deal Discuss FDR's three components and explain these examples each of the New Deal that attempted to bring about full
economic recovery and ease unemployment. Evaluate the New Deal in terms of its success. The basic New Deal legislation was passed in slightly
more than five years, from 1933 to 1938. Historians have frequently discussed these laws under the headings of the three Rs: relief, recovery, and
reform. The most pressing problem facing Roosevelt, once the banking crisis had passed, was that of providing relief for the unemployed and their
families. Private charities had long since run out of money, and few states could still provide any assistance. Under President Hoover the
Reconstruction Finance... Show more content on Helpwriting.net ...
Unemployment persisted in the early years of Roosevelt's presidency, in spite of some economic recovery. At the end of 1934 about one–sixth of the
entire country was still on relief. In 1935 a new semipermanent organization, the Works Progress Administration (WPA, later renamed the Work
Projects Administration), was set up by executive order and placed under Hopkins, and the FERA was abolished. The WPA provided work relief
only, and due to lack of money many people on relief had to depend on the hard–pressed states for a dole. The WPA projects were better planned than
those of the CWA, and many of them were of lasting benefit to their communities. Roads and streets were built or improved. Schools, libraries, and
other public buildings were constructed or repaired. Artists, musicians, and writers performed for the benefit of the public. Administrative costs
were higher than those of the FERA, but the projects carried out were more complex and useful.Two other relief operations were designed
especially for young people. Both were of great interest to the president and his wife. The Civilian Conservation Corps (CCC) provided work for
unemployed and unmarried young men. They received food and shelter and were paid $30 per month, of which $25 had to be given to relatives or
dependents. More than a quarter of a million men, many of them from city slums, worked in the corps, living together in camps under

Herbert C. Hoover's New Day Presidency
"Herbert C. Hoover's New Day Presidency; Progressive Management for the Un–Foretold Future" Herbert C. Hoover's "New Day" presidency began
with a landslide win the 1928 presidential election when he became the 31st president of the United States; known best for his administration's failures
and the "Great Depression" of 1930. Americans did not realize at the time of his presidency that Hoover would set policies and practices that would
one day benefit Americans in mortgage and finance, corporate and bank bailouts, and the "Great Recession of 2010". Herbert C. Hoover (Hoover),
attended Stanford and while he was a senior there he met his future lifelong research assistant, friend, mother of his children, and loving wife that ...
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Hoover claimed that voluntary cooperation was "self–government by the people outside of the Government." (Myers–Lipton ,

Homelessness As Positively Affected by the McKinney Act
This paper will attempt to explain the plight faced by one of the largest, most vulnerable populations in America today: the homeless, and how the
McKinney Act has affected it. This out–group faces many hardships and many different policies have been put into place both helping and harming
their overall wellbeing.
Policies Implemented For Homeless
Many social welfare policies have been put into place throughout the course of history to attempt to deal with the ever present problem of homelessness
. Starting at the first widespread attempt by the government with the implementation of the Elizabethan Poor Law, which placed the plight of the poor
into the realm of responsibilities of the community; and serves as the very basis for our ... Show more content on Helpwriting.net ...
The lack of affordable health care contributes as well to the problem of homelessness; an unexpected illness can turn finances upside down leaving
families suddenly homeless (Center for Public Interest Research, nd).
Political factors also play into homelessness, when the federal government slashes funding for integral social programs like housing assistance the
number of homeless persons skyrockets (Center for Public Interest Research, nd). Social problems are yet another contributing factor as to why a
person may end up homeless, especially with drug and alcohol addictions, and as many as 25% of the homeless suffer from some form of mental
illness (Center for Public Interest Research, nd). Many women and children are homeless as a result of fleeing domestic violence and there not being
adequate shelters or programs to provide assistance (Center for Public Interest Research, nd).
Description and History of McKinney Act Policy
The McKinney Act originally consisted of fifteen different programs that provided a broad range of services from emergency shelter, transitional
housing, job skills training, health care, and education and in some instances permanent housing (HUD, 2013). Since its inception the policy has been
renewed and expanded upon many times. In October 2000 President Clinton renamed the policy the McKinney–Vento Act when a longtime supporter
of the act, Representative Bruce Vento passed away. (NCH, 2006) Currently the act has nine different titles as

High Cost Mortgages : A New Office Of Housing Counseling
Subtitle C – High–Cost Mortgages redefines High–cost mortgage as a "consumer Credit transaction that is secured by the consumer's principal
dwelling". These include credit transactions secured by a consumer's principal dwelling whose interest rate is 6.5% more than the prime rate for similar
transactions, subordinated mortgages secured by a consumers principal dwelling, points and fees, excluding mortgage insurance, and if the points and
fees can be collected more than 36 months after a loan. New provisions are introduced for calculating adjustable rates alongside definitions for points
and fees. When customers receive high–cost mortgages, they have to obtain pre–loan counseling given by a certified counselor. The Act also stipulates
... Show more content on Helpwriting.net ...
Council members are appointed to 3–year terms. The department will educate the general public in home ownership and home finance topics through
coordinated media efforts.
The Secretary of Housing and Urban Development is granted authority to provide grants to HUD–approved housing counseling agencies along with
state Housing Finance Agencies to provide education assistance to various groups in home ownership. The Secretary is also instructed to establish a
database used for tracking foreclosures and defaults on mortgage loans focusing on 1 through 4 unit residential properties.
Subtitle "E" Mortgage Servicing
Deals with rules concerning escrow and settlement procedures for people who have trouble repaying their mortgages, and it amends the Real Estate
Settlement Procedures Act of 1974. In connection with a residential mortgage there should be an established escrow account for the payment of taxes,
and hazard insurance. If the need arises, flood insurance, mortgage insurance, ground rents, and other required periodic payments can also be added.
Lender will communicate with a borrower at least three business days before they close the specifics of the amount they need in an escrow account
and the subsequent uses for the funds. If the consumer chooses to close an escrow, impound, or trust account or one is not established, the servicer
must provide a timely and clearly written disclosure that

The Current Recession and Mortagage Foreclosure
Introduction
Foreclosure has become an outbreak affecting the entire United States of America. Realtytrac just reported in the month of April 2011 that one in
every 593 housing units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida,
Michigan and Nevada continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a
casualty to a foreclosure, short sale or even bankruptcy was collateral for the lender holding the promissory note. The consequences tend to come at a
cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the ... Show more content on
Helpwriting.net ...
As a result of the medical situation, the person may incur excessive medical bills which could further affect the ability to repay the mortgage.
4. Increase in expenses: Expenses associated with owning a house can increase over time. Housing expenses include: property taxes, homeowners or
hazard insurance coverage, homeowners association (HOA) dues and/or special assessments, and utilities. Basic personal expenses such as food,
clothing, and travel can also increase based on supply and demand for the product.
5. Excessive spending habits: Not everyone is budget savvy. Some individuals let their wants or desires drive their spending habits by purchasing
items and services that are not a necessity for basic living. Credit card spending can help fuel this type of habit. Too much credit card debt could
ultimately change the borrower's ability to repay for their mortgage and other liabilities.
6. Unable to sell the home: The borrower(s) may already recognize that they are in a situation that requires them to sell the home. One problem is the
home has been on the market longer than the homeowner(s) can afford and there are no interested buyers. Another problem that could exist occurs
when the property is worth less than the outstanding principal balance on the mortgage loan.
7. Unfavorable loan terms: The original mortgage loan may have been structured with unfavorable loan terms. Examples of the most common mortgage
types with

Welfare Reform Failure
They hope that the recipients will work towards someday leaving the program. While this is the goal, many recipients will not attempt to find work or
the job is consider too low paying for them. Therefore, they continue to be a welfare recipient or are forced out of the program. There have been many
changes in the welfare system and how to deal with the poor and less fortune. If you are having a difficult time paying your medical bills, housing and
most important food for yourself and your family, you are definitely not alone even in 2014. Temporary assistance for needy families TANF replaced
the traditional welfare programs known as Aid to Families with Dependent Children ( AFDC) . The welfare system would be an unlikely model for
anyone designing a welfare system 1996. The type and amount of aid available to individuals and dependent children varies from state to state. Failure
to comply with work requirements could result in loss of benefits . Current ... Show more content on Helpwriting.net ...
Even though the republican controlled congress, the bill passed. The desired outcomes of people on welfare will depend primarily on the
circumstances that caused them to apply for assistance. Persons who are mentally or physically disabled person may not be expected a assume
independence after a period of time and with the proper training, so welfare would provide ongoing aid to better their standard of living. Some of
them participate in Assisted Living Housing or other halfway housing until they are able to get out on the own. The United States Congress has
supported various programs to assist the poor and has provided aid as early as to civil war veterans and their

Government Grants Essay
Owing a beautiful home is a dream of almost every person. Some of them get succeed in converting this dream into reality while for others with
low income it seems to be a hard nut to crack. Good news is that now you even during your bad economic time can dream of getting a new home.
This is because several government grants for low income housing plans are available to help you obtain the much required financial support while
looking for a home. The government has a lot of grants to offer to serve different others needs of the small earnings individuals. Of course, the grants
for low income families are not just restricted to starting a company and to build a brand new house. In addition to it, the grant is extended to meet
most from the... Show more content on Helpwriting.net ...
You need to research through the authorized online sites to collect every minute information and particulars. Agencies provides such grants particularly
ask for proof to your eligibility, make sure to attach it, too. Remember, if something is wrong with your details, the authorized officers will easily reject
your application on grants. Make each work to total all the work, prior to time to certainly get the benefits of grants for low income families.
Grants.Gov is the funding portal of the government that can give you details about the various financial assistance programs of US federal government,
state administration and local authorities. The funds flow from the federal government to states and from states to local government. Fund is raised by
the federal government and this is taxpayers' money that is distributed among the need citizens.Private foundations, business families and benevolent
individuals also help the government in this act. They provide financial assistance to their communities or non–governmental organizations working in
a specific geographic area. If you are rural citizen and are above 60 years of age then you can get fund for remodeling of your home. The remodeling
work includes changing pipes, electricity wires and using green energy to keep the house clean and hygienic. Grants for low income housing come in
the form of low interest loans, easy repayment options stretching up to 20 years and other products. Since

Housing Markets : Housing Market
Housing market data reflects more pronounced improvement lately – and that's good news for the economy, for credit union members and for credit
union operations.
Housing's importance to the economy is undeniable, with a healthy housing market essential to robust economic growth historically.
Overall, housing accounts for nearly 20% of U.S. economic activity: private residential investment which includes construction of new single–family
and multifamily structures, residential remodeling, production of manufactured homes and brokers' fees averages roughly 5% of GDP historically.
While housing services (including gross rents paid by renters, owners ' imputed rent and utility payments) averages roughly 13% of GDP.
Economists estimate that in 2014, building an average single–family home kept 2.97 FTE workers employed for a full year, while building an average
rental apartment generated 1.13 FTE full–year jobs and each $100,000 spent on remodeling activity generated 0.89 jobs on average.
Builders – men and women with skin in the game – now clearly believe the housing market is in great shape. The National Association of Home
Builders (NAHB) Housing Market Index is based on a monthly survey of builders who rate market conditions for the sale of new homes at the present
time and in the next six months as well as the traffic of prospective buyers of new homes. The index – which stood at 53 in July of 2014, rose to 58 at
the start of 2015 and came in at 60 both in June and

Housing Market and Property Taxes Effect Essay examples
During the Great Recession, we have seen property taxes and the housing market bubble decline substantially. During this down turn of housing
prices and decrease in taxes we saw a drop in the revenue that is created by property taxes. Property tax helps to pay for a majority of public services
but most importantly our K–12th grade education system. It also helps fund parks, police and fire department services as well. During this period of
down turn there was not a raise in taxes causing the states to increase spending cuts and to use more federal monies and their rainy day funds. Because
of this lack of revenue coming from property tax and housing bubble it caused the local governments budgets to be impacted negatively. By examining
how ... Show more content on Helpwriting.net ...
Also, there can be planned structural deficit which is where the government decides to invest in the future of the country. For example, investing in job
training, higher education, transportation or infrastructure changes throughout the city are all planned structural deficits. These are all investment that
will not show an immediate return causing a structural deficit, but one that is planned.
California is a good example of how cyclical and structural deficit problems can become a financial crisis in local governments. California has
throughout it's time had high economic growth allowing them to get a budget that could expand public service, maintain tax cuts and maintain a
high living type of life style. After the Great Recession we see that the downturn of economic production and the use of rainy day funds have
crippled the progress they once with keeping a well balanced budget. Because of this, California and other states are facing huge budget gaps that
they cannot bring to a close. California has tried to solve its budget problems with tax cuts and one time tactics to curb the problem temporarily. In
addition, California has shown trends of having a spending problem and being unable to live within its means. The problem is these quick fixes were
only temporary measures.
When economic times get rough, policymakers often neglect to make the tough decisions needed to

Understanding The Experience Of Emergency Management And...
Abstract
Collaboration involves various groups or groups of people working together to accomplish a desired outcome. It is a bit like teamwork. By
strengthening connections during an emergency crisis, you have the ability to be more effective, faster, produce more, and have more personnel
available. Collaboration offers more innovation and experience to a situation. This paper will discuss the roles of those that were involved in the
collaborative efforts of FEMA. The basic reasoning for this paper is to provide knowledge and understanding the experience of emergency management
and collaboration that took place during Hurricane Sandy.
Introduction Hurricane Sandy pushed across New York coast and left a devastating trail behind. There devastation was so great that it caused federal,
local, and regional levels to develop plans and strategies for future crisis. An emergency situation on a magnitude as Hurricane Sandy created a
collaboration of many emergency services. FEMA, Red Cross, Department of Transportation, and many local agencies were involved with managing
the chaos caused by the storm. Collaboration was utilized during the occurrence of the storm and after the storm. Several of the agencies and their
involvement will be described.
FEMA had more than 1900 staff members working and responding to the crisis of Hurricane Sandy. Personnel assisted in the recovery operations,
research and rescue, and displacement housing. Evans has states that FEMA

Market Crisis And Its Effects On The Housing Market
According to Fligstein, the next step in market formation was crisis. In The Architecture of Markets he states, "market crisis is first observed when
incumbent organizations begin to fail." From 2007–2009, the housing market crashed as the value of homes in the US fell drastically. As a result, many
homeowners began defaulting on their mortgages causing huge problems for those involved in the mortgage securitization market. On September 7th,
2008 when the Federal Housing Finance Agency (FHFA) place both Fannie Mae and Freddie Mac under government conservatorship. In addition, the
US Department of Treasury agreed to inject up to $100 million into each GSE in order to provide liquidity and to continue purchasing
mortgage–backed securities in the market. This would slow the US housing market's downward spiral. In return, the government would be able to
purchase 80% of Fannie Mae and Freddie Mac. The goal of these policy responses was to provide stability to the financial market and support the
availability of mortgage finance. http://www.econstor.eu/bitstream/10419/70730/1/599527757.pdf As of 2008, both Fannie Mae and Freddie Mac held
$5.5 trillion in mortgage debt so preventing them from collapsing was at the forefront of tasks for the government. The actions of the FHFA and
Treasury stabilized both agencies by guaranteeing their mortgage–backed debt. As previously stated, the first step in stabilizing the mortgage finance
market was to place both Fannie and Freddie

Housing Market Crash Essay
During the housing boom, the insecurity of consumer's financial situations was used by those in finance to make a profit. Many entities were enticed
by their greed to take risks and cut corners that ultimately affected the consumer, not themselves. The consumer's own search for profit and their trust
in the housing market made it easy for them to be lured into the gambling game being played by banks and investors. The incentive to take risks
started when banks realized the profitability of offering special mortgages to those with low–income or a poor credit score (Cassidy, 2009: 243–244).
At first these were only offered by "hard–money lending" banks that offered mortgages with incredibly high interest rates (Cassidy, 2009: 251). These
types of... Show more content on Helpwriting.net ...
Banks made the practice even riskier by often lying about a borrower's income so automated systems would approve them for a loan (Cassidy, 2009:
244–245). Banks had no problem doing this because they had found a way to pass the risk off of themselves. Wall Street investors had become
interested in the high interest rates associated with these mortgages and the potential for a high–yield (Cassidy, 2009: 253). Wall Street investors would
buy mortgages off of the bank's' books, assuming the negative consequences if a mortgage were to default (Cassidy, 2009: 245). As a result, banks no
longer had an incentive to really investigate who was applying for mortgages or monitor their activity once they were taken out (Cassidy, 2009:
256–257). As the boom went on, this behavior persisted as Wall Street offered more and more for mortgage securities and banks were under pressure
to give mortgages to anyone they could, no matter the risk (Cassidy, 2009: 258). Banks often engaged in predatory lending to achieve this goal, which
meant they tricked or confused borrowers to take out loans they didn't fully understand (Cassidy, 2009:

Key Constraints to Housing Development Finance in Nigeria.
Key Constraints to Housing Development Finance in Nigeria.
A TERM PAPER
DEPARTMENT OF ESTATE MANAGEMENT AND VALUATION
SCHOOL OF ENVIRONMENTAL STUDIES; FEDERAL POLYTECHNIC, NASARAWA, NASARAWA STATE e
–mail: fpnas@yahoo.com, Tel.:
+234 – 047–66701, 66707 047 – 66238 (DL)
JULY, 2012
BY
UZOKWE, LAWRENCE CHIDI
Department of Estate Management and Valuation
School of Environmental Studies
The Federal Polytechnic Nasarawa,
Nasarawa State.
Email: Uzokwe_Lawrence@Yahoo.Com, 08059128950
ABSTRACT
The focus of this study is to examine the problems that are associated with housing development finance in Nigeria. The study attempts to explore the
various sources of finance that are available for real property development with a view to ... Show more content on Helpwriting.net ...
There are various sources through which the developer can get fund to finance real estate development.
2.2.1.Equity Capital
This is the fund realized from personal savings and family savings. It is usually low because of low per capital income, unequal distribution of income
and high population in each family unit resulting in excessive consumption, low savings and low investment in Nigeria.
Since this equity capital is usually small, it is prudent for him to decide on a mixture of equity and debt capital which will not only guarantee the highest
expected return but also not impair the viability of the development. A developer's

Ability to borrow will be enhanced by the size of equity capital at his disposal.
2.2.2.Direct Loans
These are the loans got directly from the various lenders such as banks and other financial institutions for a specific period. They are classified
according to their duration, short, medium and long terms.
(a) Short Term Loans
The conventional method of raising funds for the acquisition of land and the subsequent development of potential investment property over a two to
three year period is by way of short–term finance. The traditional sources of short–term finance are the commercial and merchant banks as well as
finance houses. The terms on which these loans are provided are usually very stringent and the interests charged are usually on

The Current Scenario Of Raising Prices And Methods
INTRODUCTION
This literature review provides a review of the existing theories about the current scenario of raising prices and methods involved to draw inferences.
This presents different views of economists which are published. The whole section is divided into segments, the former concentrating on the papers
and the newspaper articles in the latter.
EXISTING LITERATURE It is important to understand what term "bubble" means, the following describes–
"A sharp rise in price of an asset or a range of assets in a continuous process, with the initial rise generating expectations of further rises and attracting
new buyers–generally speculators interested in profits from trading in the asset rather than its use or earning capacity. The ... Show more content on
Helpwriting.net ...
The following graph shows the appearances of the term "Housing Bubble" and "Housing bubble" in the U.S Newspapers and Wire Services, 1980 –
2003: Source: Lexis– Nexis
a.Data cover January 1980 through July 2003. They are rescaled for changes in the sizes of the database
Shiller and Karl mentioned that the problem in seeing housing as an investment is the major reason for the bubble. But, economists Margaret and Gary
published in the article "Bubble, Bubble, Where's the Housing Bubble?" that the correct way to predict a bubble is to juxtapose the price of the house
with the value of house as an investment (Margaret and Gary, 2006).
According to them Bubble is defined as
" A situation in which the market prices of certain assets (such as stocks or real estate) rise far above the present value of the anticipated cash flow from
the asset (what Kindleberger called the asset's use or earning capacity)"
This definition suggests that bubble can occur when market value is not justified by the house projected cash flow.
Once the bubble is defined it is important to understand how these bubbles are measured and predicted and kind of tools are used in gauging these
situations. This process is called "Bubblemetrics". It is coined by Margaret and Gary in their paper.
Bubblemetrics
Researchers and economists used various models and variety of methods to measure the bubble. The major problem is to identify which one is
accurate as homes are different in its

Securitization Of Housing Bets
Mortgage–backed securities were bonds that were secured by home and other real estate loans. They were created when a number of these loans,
usually with similar characteristics, were pooled together. As part of the housing and credit booms, the amount of financial agreements called
mortgage–backed securities, which derive their value from mortgage payments and housing prices, greatly increased (Subprime mortgage crisis). Pools
of loans were sold to federal government agencies like Ginnie Mae or a government sponsored–enterprise such as Fannie Mae or Freddie Mac.
Securitization was the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security. A
typical example of securitization ... Show more content on Helpwriting.net ...
The worst of the mortgages were packaged and tranche into bonds and got rated AAA by these credit rating agencies. By erroneously rating these
bundles of mortgage–backed security payments too highly, the credit rating agencies substantially contributed to the creation of toxic financial assets.
The problem was each agency were competing for the banks revenue, to keep the banks business the agencies would always rate their bonds the
highest possible grade of AAA.
Executives at Fannie Mae packaged both conventional and sub–prime loans, while operating almost free of government oversight. Fannie's leaders
spent lavishly to hire sixty Washington lobbyists who showered congressmen with campaign funds. Executives at Fannie were generous to the
politicians because they wanted to ward off regulation (Toplin). Adding another layer to this financial disaster happened when the Treasury bill rate
went so low investors had to find other ways to yield a profit, and with little oversight, executives certainly had no problem introducing creative
financing to main street America.
Mortgage underwriting standards declined precipitously during the boom

Housing Market Failure
The housing market crash of 2007 to 2009 is said to be one of the main reasons for the housing market crash. The crisis occurred when homeowners
were not able to make payments on their mortgage. Homeowners were unable to keep up with payments when low introductory rates converted to
regular rates. Real estate property began to lose its value, leaving many homeowners with a negative equity. Soon after the housing bubble the
government took over (two GSEs) Fannie Mae and Freddie Mac, in order to prevent the financial crisis from getting any worse In the most recent
FSOC annual report, the council reported that significant efforts have been made to improve the housing market and reduce taxpayer risks. However,
market growth has been slow,... Show more content on Helpwriting.net ...
Department of Housing and Urban Development (HUD) alongside congress to implement a robust reform plan. In its most recent annual report the
council stated that risk sharing transactions improved. The FHFA will continue to reduce the GSEs risk by engaging in risk sharing transactions.
Within this time period The Federal Reserve voted on the final terms of the Dobb Frank Retention Rule. The rule will require security backed assets
sponsors to maintain a financial interest in their securities. The implementation of the rule was to mitigate risks that caused the financial crisis. The
Common Securitization Platform launched a partnership with Common Securitization Solutions LLC, with a goal of achieving a more sustainable
market. As recommended by the council congress should continue to promote best practices and standards in the housing market, mainly addressing
the financial

JP Morgan Chase Catastrophe
In the year of 2007, the Great Recession began. It all started at the bustling Wall Street. It was a pandemic that brought dilemma to the businesses, to
the employees and to the elated new home owners. JP Morgan Chase was one of the major banks participated in falsifying the mortgage loans, and
they suffered consequences for what they did. The mortgage loans gave temporary joy but longtime misery to home buyers. The federal government
filed a lawsuit, and it reached a settlement. The tragedy resulted to Global and Financial reforms. The mortgage loans were used in risky businesses.
Back in 2008, James Dimon, the head of JPMorgan Chase, disclosed mortgage underwriting was terrible. Mortgage loans are assets that were exploited
to make up collateralized debt obligations. They were also destructively utilized in investing of the banks. The mortgages seemed improved, and they
were swiftly sold because the bank attuned the critical assessments when an outside analysis exposed intense defects with thousands of home loans. In
consequence, millions of Americans were unable to put their homes on market because they had lost so much worth as the housing market dropped.
Gretchen Morgenson, writer from NY Times, dubbed the loans as "poisonous." Due to the bank malpractices, they faced criticisms. From 2005 to 2008,
the bank confessed to a statement of facts that figured how it crashed to totally unveil the hazards of buying uncertain mortgage securities. In March
2013,

The United States Of America
It has been seven years since the largest and most powerful capitalist country in the world faced an uncertain and volatile financial meltdown that
affected domestic and international soils. The United States of America (USA) was hit by a recession that began in early 2007, under the leadership of
President George W. Bush. The initial signs of recession were not clear and did not appear a significant threat to the financial health as it came in
waves, turning the end of 2008 in a more severe recession, which resulted in the biggest financial crisis. The United States' (U.S.) Gross Domestic
Product (GPS) began to shrink at a 2 percent annual rate in 2007 with a net loss of 210,000 jobs per month. By the end of March 2008, these figures
jumped drastically increasing to an 8.9 percent and an accelerating total net loss of 830,000 jobs were claimed. (Hennessey K., Lazear E. 2013). In
addition, the most financial breathers became vulnerable; various financial firms such as Bear Stearns faced liquidation while Lehman Brothers was
forced into bankruptcy by the end of 2008, and that was just the beginning. How could this happen? What were the reasons for the accelerated failure of
the financial market, bankruptcy of major financial institutions and massive loss of jobs in USA? How could regulated organizations that drive the
finance wealth of this country collapse and cause an aggressive recession that left many Americans without homes, jobs and in with an uncertain
future? How

The Housing Market and Affecting Factors
Housing Market National fiscal policies are influenced by the Federal Reserve, including the increase or decrease of interest rates. This affects
mortgage rates and prices. When interest rates fall the demand for housing tends to rise, conversely when interest rates rise the housing market is
adversely affected. There are several federal government divisions active in the role of reducing interest rates to stimulate the housing market
including the Federal Housing Finance Agency, HUD, FEMA and the central bank (Weil, 2008). Fiscal policy is decisions by the President and
Congress usually relating to taxation and government spending with the goals of full employment, price stability, and economic growth. In order to
boost the economy the government will change tax policy and provide incentives to provoke consumers to spend (Heakal, 2009). One of the biggest
tools the government has used is the First Time Homebuyer Tax Credit. By giving people a $7500 tax credit when they bought their first home, which
made many more people buy houses between the years of 2008–2010, which helped stabilize the market for a little while. Once the tax credit ended,
the housing industry started falling again. Diana Olick (2012) predicts that until the housing market is no longer dependent on distressed supply to
support overall home sales calling a bottom to the national housing crisis is premature. The recent rise in home sale prices, up 1.7 percent, was a result
of first time buyers and

Homeless Mission Statement Analysis
The agency's mission statement is as follows "The Coalition for the Homeless is the nation's oldest advocacy and direct service organization helping
homeless men, women, and children. We are dedicated to the principle that affordable housing, sufficient food and the chance to work for a living
wage are fundamental rights in a civilized society. Since our inception in 1981, the Coalition has worked through litigation, public education and
direct services to ensure that these goals are realized." Their purpose is to help as many people as possible avoid homelessness. They provide immediate
help but their goal is to create long term solutions for families. The Coalitions serves as a voice for those who are ignored and forgotten. They speak for
After families or individuals are placed in an apartment, case workers will meet with them twice a month. The staff ensures that clients receive the
necessary health care and benefits. They also accompany clients to medical appointments and even help them go shopping for groceries in the event
that the client may be too weak to go out. Another program that they have is The Grand Central Food Program. This program was founded in
1985.This program was started because a homeless woman died of starvation in Grand Central Terminal. Over the years, this program has grown to
be the largest mobile soup kitchen in New York. Every night, three vans will go out and deliver healthy meals, bread, fresh fruit, and juice or milk.
During the winter they will also give out coats, hats, gloves and blankets to those struggling to survive in the cold. Sadly for many homeless New
Yorkers, this is the only meal they will consume for the

Sparta Community Action Plan
The County of Sparta and its surrounding areas have recently been plagued with crime. According to the available data, during the last two years
gang–related homicides have tripled and felony assaults, robberies and rapes have doubled as well as a rise in drive–by shootings. Local law
enforcement agencies as well as state and federal agencies along with the community stakeholders are in desperate need of resolving this problem. The
task at–hand is to develop an Action Plan involving as many law enforcement agencies, community action/involvement–type groups and ordinary
members of the community to identify the persons or groups involving in criminal activity, the problems which cause their violent behavior, and a
remedy to improving... Show more content on Helpwriting.net ...
The newly created task force will adopt a crime initiative which addresses all of the concerns and issues related to improving the overall quality of life
by radically reducing crime through all legal means available. The Regional Task Gang Task Force will employ a wrap–around of deploying its
respective resources to simultaneously address all of the related issues. Task Force Participants will be: The State Prison Superintendent; the Chiefs of
Police from the three local police departments; the Agent–in–Charge from the Drug Enforcement Administration of the Narcotics Enforcement Team
(NET); local, state and federal Housing officials; Parks and Recreations Director; United States Parks Police; the law enforcement agency responsible
for boating, fishing, etc.; State and Federal Prosecutors; School Superintendent; and, Budget and Finance Directors from each jurisdiction. The goal is
to achieve the stated goals within eighteen months. To ensure compliance, the Sheriff will convene the entire task force sixty days after the initial
meeting and quarterly thereafter. During the quarterly meetings each task force participant will report to the entire group. They will report their
progress, any issues impeding their progress, provide the group of any strategic changes and voice any recommendations.
Action

The Central Problem Of Depression Prevention
In 2003, Robert Lucas an esteemed professor at the university of Chicago and winner of the 1995 Nobel memorial prize in economics gave the
presidential address at the annual meetings of the American Economics Association. "The central problem of depression–prevention", he declared, "Has
been solved for all practical purposes". He asserted that macro–economics had not so much extinguished the cycle of recession but had some what
tamed it, it was now time to focus on long–term economic growth. (Krugman:2008)
On 15th September , 2008, Lehman brothers went under. In the following weeks, the Federal Reserve (FED) and the United States treasury
nationalized Fannie Mae and Freddie Mac(the two largest mortgage companies) and they took over the ... Show more content on Helpwriting.net ...
What investors and officials believed to be the storm in entitreity was merely a false alarm, the catalyst for what would follow less than a decade
later. Between April 1997 and June 2003, the Dot.com bubble was witnessed, where a series of investors contributed to technology services and
internet start up companies in anticipation of a success which was not entirely delivered. (WWW.businessinsider.com) After the bubble had burst, the
American and global economy appeared like it would endure a period of stability under the speculation of many senior economist, following 2001
however, the housing market and the American dream became the 'New thing' with a backdrop of securitization bonds and CDO's. (USA Journal)
The federal reserve and Robert Greenspan contributed to the craze, a response to the prior dot.com bust. The central bank kept short term interest
rates low and created liquidity, it produced a credit fueled boom where the general consensus was that borrowing was the only way to live, in the UK
for example, household debt as a percentage of post tax income was at an average 100 percent prior to 2000, by 2007 however, it had nearly reached
175 percent.
Not only were people who could not previously afford mortgages taking part, but the middle class also began to accumulate housing assets, middle
class households used the rising value of their homes to pay

The Crisis Of The Fiscal Crisis
The 2007–2008 US 'credit crunch', also known as 'subprime mortgage crisis', is one of the largest financial distortions that has recently struck US
economy and resulted in the huge slump in the economic activity. Actually, there most likely exists no single reason that has led to the financial crisis
of such degree but rather a simultaneous combination of several practices in the US economy of that time. Experts usually distinguish the following
diverse causes of 2007–2008 US 'credit crunch': the increase in the spread of the structured finance products which lacked transparency, deregulation of
financial sector and lack of financial institutions' supervision, inappropriate credit ratings assigned by credit rating agencies on complex financial
products, excessive lending activities that has led to the increase in credit risk, lack of adequate liquid reserves to back the existing commitments and
some others. Generally, all these causes can be divided into two main groups: one attributed to the fails of government regulations and supervision and
the other attributed to the increased popularity of financial innovations. This essay will discuss all major reason that contributed to the start of the
crunch and prove that credit risk attributed to lending activities is not the root cause but rather one of consequences of the spread of financial
innovations and thoughtless government policy. The structure of the essay is the following. The essay starts with giving a brief overview

The Federal Reserve System And U.s. Monetary Policy
This report discusses the association between the Federal Reserve System and U.S. Monetary Policy. It mentions that the government can finance war
through money printing, debt, and raising taxes. It affirms that The Federal Reserve is not a government entity but an independent one. It supports that
the Federal Reserve's policies are the root cause of boom and bust cycles. It confirms that the FED's money printing causes inflation and loss of wealth
for United States citizens. It affirms that the government's involvement in education through student loans has raised the cost of a college education. It
confirms that the United States economy is in a housing bubble, the stock market bubble, bond market bubble, student loan bubble, dollar bubble, and
consumer loan bubble. It supports the idea that the Federal Reserve does not raise interest rates because of the fear of deflating the bubbles they have
created in recent years.
What's Wrong With U.S.Monetary Policy
The Federal Reserve System was enacted by Congress in December 23, 1913. Its purpose was to eliminate banking panics. It is made up of twelve
individual Federal Reserve Banks nationally. The question is who owns these banks? According to Factcheck.org It is actually owned by big private
banks. They elect a board of directors for each of the Reserve Banks. The Federal Reserve is not a government entity but an Independent one. It does
not need any approval by Congress or the President when it comes to monetary

How Is The 2007 Subprime Mortgage Crisis Different From...
How is the U.S 2007 subprime mortgage financial crisis different from other countries? Carmen and Reinhart paper answers this question in light of
historic crisis in Big Five developed countries and compares it with U.S 2007 crisis. In the second paper Kenneth Dam does an international
comparison of the weaknesses in the financial regulation which led to the subprime mortgage crisis. The subprime mortgage was invented to give loans
to less credit worthy people with higher interest rates. The lower credit quality ultimately led to massive defaults which decreased the housing prices.
The subprime mortgage crisis rapidly turned into a worldwide financial crisis because so many financial institution 's in different countries invested in
One thing that seems to deviate from the general trends is that U.S stock prices did not decrease like all the other nations before the crisis. Carmen
and Dam refer to this phenomenon as Greenspan put, because the chairman of the Federal Reserve Greenspan was notorious for constantly
pumping money into the economy and keeping interest rates artificially low. Also U.S deficits are much higher compared to other developed
countries before the crisis. U.S fiscal policy seems to be rolling over its debt in perpetuity and does not borrow with the intention of paying it all
back. Whether this fiscal policy is sustainable remains to be seen. Furthermore the decline in GDP growth seems to be much more severe and longer
in the Big Five countries compare to U.S. This again could be due to the active monetary policy of Federal Reserve in U.S and the constant
stimulation. Another notable thing is that public debt escalates after a crisis in all the countries. This could be due to increase federal government
spending after the crisis for bailing out companies and etc. Above are the indications that lead to crisis but what are the major causes of the crisis?
Dam's paper answers this question by first explaining the

Summary: The Twisted Mortgage Crisis
Between 2007 and 2008, the impending mortgage crisis met its peak, and subsequent "burst". In simple terms, over the years leading up to the housing
bubble, banks loaned out large amounts of money to the people in an effort to stimulate the economy. Those who originally did not qualify for such
large loans, now did. However, these subprime borrowers (borrowers with a poor credit history) often could not actually afford their payments, leading
them to file for bankruptcy, and pushing the country closer toward the recession and the collapse of the housing market. The rise in subprimemortgage
delinquencies and foreclosures meant a severe decline in securities. As the recession escalated, the wellbeing of financial institutions and citizens alike

Fannie Mae And Freddie Mac
1.During the great depression in 1934 many people didn't have jobs. Not having jobs meant that it would be awfully hard for them to obtain a loan
from banks in order to purchase homes. The government decided to help the American people by creating the Federal Housing Administration (FHA)
which basically stepped in and allowed banks to offer mortgages to more people with the promise that the banks would get their money back. The FHA
finances itself with insurance premiums that they charge borrowers as well as interest that they receive on reserves. They use these funds to underwrite
more loans which helps out people with their mortgages.
Two other government–sponsored enterprises are Fannie Mae and Freddie Mac. They were built by congress to ... Show more content on
Helpwriting.net ...
In my opinion, the government should take a step back and not be involved in the USA housing market any longer. The reason behind my
thinking has to do with the new president we have in the White House. President has come out and said that he has a new tax reform plan that's
supposed to have significant changes not only to personal taxes but corporate taxes as well. Trump has said that he wants to lower the corporate
tax rate from the current 35% to 20, maybe even 15% which is great news for corporations but not so great when it comes to Fannie Mae and
Freddie Mac. The reason that this would be bad for these enterprises is because they are under conservatorship and cutting the corporate tax rate
would force these enterprises to once again need a bailout. Being under conservatorship means that for every quarter Fannie Mae and Freddie Mac
make a profit, they have to pay dividends to the department of treasury and at the same time they aren't allowed to rebuild capital but instead their
capital base is diminished as time passes which means that in 2018 they will have not one penny remaining in their capital reserves. Furthermore,
lower corporate tax rates mean that Fannie Mac and Freddie Mac will have "significant deferred tax asset write–downs...which, in turn, could lead to
the GSE's need an additional draw from the Treasury to cover tax–related losses" (Housingwire). To reiterate my point once again, I believe that the
government shouldn't continue its involvement in the

The American Foreclosure Crisis Essay examples
Foreclosure is a dreadful aspect of home–owning. The American foreclosure crisis, and its subsequent economic recession, was caused by lateral
misguidance on part of private banks, the federal government, and by the millions of people who purchased their homes on credit. Over 900,000
foreclosures have occurred in California alone, making its foreclosure rate the largest and most formidable; as a result of the housing downturn,
private banks like JP Morgan and Wells Fargo succumbed to bankruptcy, as the toxic assets they possessed lie curdled and menacing. Stocks tumbled
as confidence in our financial system crashed; millions of people lost their jobs in the course of one petrifying year. The lending process was halted,
effectively stalling ... Show more content on Helpwriting.net ...
It would be separate from the U.S. Chamber of Commerce, and would possess federal powers to regulate mortgages, credit cards, and car loans.
According to USA TODAY, this legislation "would usher in the biggest changes to the nation's financial system since the Great Depression"
(Schouten). It is the one of the first examples of a federally–backed effort to address the repercussions of our foreclosure crisis, and to move our
country in a positive direction. The CFPA's specific aims have yet to be outlined or determined, and in that case, I will propose a solution for this
agency and its supporters to instigate. The first part of my plan is specially geared towards the CFPA and its capabilities, while the second part will
have to be determined by the U.S. Senate and Treasury Department.
The Solution
1.Consumer Intelligence
Within the constructs of a mortgage lending plan, whether traditional or modified, there will be a clause that requires every consumer seeking a loan
to pass a "Mortgage Loan and Foreclosure" course in order to receive a Consumer Intelligence Certification (C.I. CERT). The federal government will
require, through oversight of the CFPA, that every bank includes this C.I. CERT within the lending process.
A one–time course will be created and written by the CFPA that outlines the language of mortgage lending, different loan types, the nature of interest
rates and the economic market, as well as the full, arduous process of foreclosure and what it

The Foreclosure Outbreak: Causes and Consequences

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