¶ … Prime Mortgages
Subprime lending is by definition:
The pervasive practice of making loans at higher interest rates and more aggressive payback terms to those with lower credit
Loans made above the market interest rates
The practice of lending to a Subprime borrower with a FICO score below 620
Loans that are structured for the maximum security of the lender and the maximum liability of the borrower
All the above a, B, C
The answer is F
It is estimated that this percentage of mortgages in the U.S. are financed through Subprime mortgages:
The answer is C
Consumer rights group represented by Attorney Irv Ackelsberg, in testifying to Congress on the Subprime crises, estimated that this many mortgages will be ultimately effected by the Subprime crisis:
million
The answer is e
Which of the following are examples of sub-prime mortgages:
Interest-only mortgages where interest-only payments are made for the initial years of the loan (2, 5 or 10 years)
Initial fixed-rate mortgages that convert to variable rates, which include the popular 2-28 loan that is 2-year fixed then 28-year adjustable
Pick a Payment Loans where the borrower defines if the payment is going for interest only, thereby making the payment much more affordable for lower income borrowers
Adjustable rate mortgages that start at high interest rates based on credit scores and payment histories then fluctuate with the market
All the above the answer is E
According to LoanPerformance market research firm there are:
Approximately 1 million Subprime borrowers and 70% of them will have their mortgages reset to higher interest rates before the end of 2008.
Approximately 2 million Subprime borrowers and 80% of them will have their mortgages reset to higher interest rates before the end of 2008.
Approximately 3 million Subprime borrowers and 90% of them will have their mortgages reset to higher interest rates before the end of 2008.
Approximately 4 million Subprime borrowers and 75% of them will have their mortgages reset to higher interest rates before the end of 2008.
Approximately 4.5 million Subprime borrowers and 85% of them will have their mortgages reset to higher interest rates before the end of 2008.
The answer is C
Interest rates will be lowered reaching 3.4% in 2011 and borrowers won't have to begin repayments until they are making about $15,000." (Education Portal, 2007) Furthermore, the effectiveness of this bill is questioned because after 2011 interest rates will quickly climb on these loans again. The work entitled; "Student Loan Lenders Creating a New Credit Bubble" states of investors, that they are: "...clamoring to purchase bundled student loans. According to
Sub-Prime Mortgage Lenders Ethical Legal Issues Ethical and legal issues concerning sub-prime mortgage lenders The essay is aimed at exploring the subprime mortgage lending and related ethical and legal issues. Subprime mortgage has become an influential industry in particular due to the increase in trend to take loans for house purchase in an average American. Ethical Issues involved Legal Issues Ethical and legal issues concerning sub-prime mortgage lenders Subprime Mortgage Industry Legal Issues Ethical Issues CONCLUSION AND SOLVING THE PROBLEM Ethical and
ethical and legal issues regarding sub-prime mortgage lenders. Unfortunately, the focus has been inordinately upon the poor individuals who were exploited by accepting these predatory and exploitive loans o highlight & copy (Goolsbee, 2007) . Simplistically, they have been blamed for the recent U.S. financial meltdown. The emphasis needs to be focused upon the mortgage lenders themselves. While exploitation of such individuals is bad enough, to make matters worse,
The term "adjustable-rate mortgage" describes any mortgage with an interest rate and payments that adjust according to some formula agreed upon by the borrower and lender. ARMs have been generally available to borrowers for about three decades on prime mortgages, but variants have been common to subprime mortgages over the past 10 years. The traditional ARM linked the mortgage's interest rate to the LIBOR plus several percentage points." (Utt,2008) Alt
Mortgage Fraud If a rash of armed bank robberies swept across America next year, and if in these robberies criminals absconded with $30 billion dollars, one may be certain that a public panic would ensue. The banking system would likely be changed forever. If thousands of armed thugs went rampaging across the nation forcing people out of their homes, into the streets, and then destroying the properties, leaving the occupants homeless
Enter the Fed, Yet Again Unable to understand that rapid interest rate moves create shocks to the market, resulting in distortions in supply and demand, the Fed dealt with the bursting of the housing bubble by lowering interest rates rapidly, this time to next to nothing. This response was intended to stimulate the economy. In 2001, the rate decreases were also intended to stimulate the economy, but they mainly stimulated one
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