Fixing the mortgage marketplace over term paper

Mortgage, Estate Organizing, Estate Taxes, Wall Street

Research from Term Paper:

This is one of the greatest causes that contributed to the financial crisis. Wherever, the lack of ethical standards within the industry, helped to result in a number of management from: mortgage officers to real estate appraisers, to engage in predatory and illegal loaning tactics. Exactly where, many would falsify the income, credit rating histories or perhaps out proper lie to borrows about the home loans they were obtaining, along with the conditions. This perpetuated the problems as an incredible number of bad financial loans were given to borrowers who also did not qualify or could not afford the mortgage loan, if there was a change in interest rates or the economic landscape. (“Financial Reform”) to prevent this case in the future, the regulation of the complete real estate industry should fall under the legal system of the federal government. Where, the SEC or perhaps the Federal Book could oversea the proper training standards in the industry. Under this sort of system, that they could establish a national licensing and continuing education standards for all of you different real-estate professionals. You may then produce a national repository that will monitor the different professionals for moral conduct, which is often given out to home owners. What would happen is definitely, if a real-estate professional was found to have engaged in unethical standards in past times, this information would be reported for the central data source. During the different home owner education classes this information can be directed at borrowers, in order to ensure that they are working with somebody who is of excessive ethical as well as professional standards. Over the course of period, this would produce higher specifications within the sector, as individuals professionals who have exhibit the greatest standards can be sought out by simply borrowers. When, those who embark on such dishonest actions will probably be washed out of the real estate sector, as knowledgeable borrowers refuse to do business with all of them. (Phillips, 2008)

Clearly, the various federal and state homeowner relief applications have become overcome. To help fix the different complications within real estate property industry, will need solutions that will address the long-term problems that are leading to the problem. Two ways to properly address this problem is: to provide incentives pertaining to borrowers to go to financial education classes and increasing the overall levels of moral / professional standards in the real estate market. Over the long term, this will help customers to understand the way the different mortgages work as well as the laws adjacent them. This may work well with additional ethical as well as professional criteria, as you are making a system that rewards those people who are honest within the real estate sector. At the same time, you are penalizing those who embark on unethical actions. This is significant because it displays how you can include a balance between managing the sector and enabling the markets to work independently.

Bibliography

“Financial Reform. “New York Times. 2010. Web. 21 May 2010.

“Record Number of House foreclosures in 2009. ” International Business Times. 2010. Web. twenty-one May 2010.

Finney, Denise. “Mortgage Fraud. inch SF Gate. 2010. Web. 21 May well 2010.

Phillips, Matthew. “The Monster that Ate Wall structure