The sub-prime mortgage crisis was the result of a blend of low interest rates, inflated homes prices, excess foreign capital, deregulation of lending markets and ultimately, poor lending decisions made my banks, and poor borrowing decisions made by consumers. With the use of sub-prime lending vehicles, like adjustable rate mortgages, zero down lending, and stated income loans, banks lent money to people that could not afford the eventual terms, and consumers were often sucked into loans they did not understand or took on more debt then they could afford.
As the economy continues to recovery, and the lending markets have tightened, more emphasis has been placed on ethical lending standards and conservative mortgage qualifications guidelines. A balance between profits of mortgage brokers and banks is necessary for a stable financial market place and for the financial health of consumers. It is also the responsibility of the buyer, to understand what they can afford, versus what a mortgage broker may offer them.
We will continue to examine the loan qualification requirements, ethical lending standards, consumer education, and the impact of these cornerstones on the economy as a whole.
A,
www.searchlightcrusade.net/2009/04/loan_qualification_standards_l_3.html
www.opinionjournal.com/editorial/feature.html?id=110010981
The Sub-Prime Mortgage Crisis Explained:
www.stock-market-investors.com/stock-investment-risk/the-subprime-mortgage-crisis-explained.html
Posts
1 comment:
OK, good potential here. I think you are close to developing a good thesis statement and it looks like you have already searched for references. Keep going forward.
Watch your writing. Some of the sentences are a bit long. Group members must proofread. Also, see if you can activate the URLs associated with some of your references. It would be a convenience to be able to click on them directly. You might need to add a space after each URL.
Post a Comment