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The answer begins with depersonalization of the mortgage subprime primer. A contributing factor is the trend of consumers to seek loans from mortgage brokers who have access to multiple loan products from many different mortgage lenders, rather than from their local banks.


The perfect atmosphere for subprime primer maelstrom of mortgage fraud was created by limiting the information analyzed and looking to the loan broker for information without any additional verification.

Fast forward to present-day subprime primer reports that there is a subprime mortgage crisis that experts predict may result in foreclosures of thousands of family homes.

  • The Subprime Primer in Stick Figures | Psychohistory
  • Subprime Mortgages: A Primer : NPR
  • Greg Mankiw's Blog: Subprime Primer
  • The Subprime Primer in Stick Figures

Consumer groups warn that the American family itself is threatened. Is the subprime crisis connected to mortgage fraud?

Subprime Mortgages: A Primer

You bet it is. At the same time that underwriting standards became lax and automated lending procedures became the norm, consumer advocates subprime primer legislatures encouraged lenders to increase home-ownership eligibility by creating programs to qualify more low-to-moderate income applicants for mortgage loans.

Some of these loan programs carried higher interest rates, better subprime primer, and more profit for the mortgage brokers.


Keep in mind, it was the duty of the mortgage broker to guide loan applicants to programs for which subprime primer would qualify. However, sometimes the mortgage broker was motivated by the commission rather than the best long-term results for the borrower. This practice is called steering and is illegal.

The profit motive, coupled with the desire for economic prosperity, kicked in and the result is that law-abiding citizens opted to take part in the real estate boom that began at the end of the last century. The climate was ripe for scams on both sides of the mortgage process—by unscrupulous con artists seeking to make a fast buck out of the mortgage process and by unscrupulous loan originators who sought a fast commission by moving unsophisticated consumers into high-cost loans they could not afford.

Subprime loan programs with higher-interest rates seemed to be the answer for consumers with blemished or nonexistent credit histories who otherwise could not purchase homes.

In the right circumstances, these loan programs subprime primer a viable option.

Subprime loans, however, were not intended for investment property. But who was to know? After all, who would know? The lender was not checking the validity of the information subprime primer

The Subprime Mortgage Primer

Now as fraud is exposed and an unprecedented number of loans—both for homes and for investment properties—are foreclosed, property values are taking hits, overextended consumers face ruin, and sometimes entire neighborhoods begin to take on the look of evacuated war zones.

How Many in Danger? Just how many loans could be in danger? As many as one in eight of the subprime loans made in subprime primer foreclosed by Maywith predictions that almost one in five subprime mortgages that originated from to will result in foreclosure, according to information from the Center for Responsible Lending, a nonprofit, nonpartisan research subprime primer policy organization dedicated to protecting home ownership and eliminating abusive lending practices.

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The statistics do not tell the whole story, however. There is no indication of how many subprime loans were originated as part of elaborate loan fraud schemes or whether the loans originated as legitimate residential home loans. To date, there is no subprime primer that analyzes the number of subprime loans which originated legitimately versus subprime primer which originated in fraud-for-profit schemes.

It is not hard to understand that consumers wanted to get in on the subprime primer estate boom or to achieve the American dream of home ownership.


But subprime primer would real estate professionals, familiar with professional duties and regulatory requirements, join in the scams in such numbers?

Simply put—the money that could be made.

Sub-prime Primer

As property values were artificially inflated due to mortgage flip schemes, the higher prices typically generated higher fees for brokers, lenders, real estate agents, and loan settlement officers, and higher earnings for real estate investors. Appraisal fraud had the snowball effect of inflating real estate values in real estate multiple listing systems.

In turn, the multiple listing systems were then used subprime primer legitimate appraisers as comparable subprime primer for determining market values for neighborhood properties. Where do they live?