fraud is “an intentional deception or deceit‚ perpetrated for profit or to gain some unfair or dishonest advantage” (dictionary.com). Fraud is a breach of law and can be punishable by law. Mortgage fraud is one of the financial crimes where a company materially misrepresents or omits information on its mortgage loan documentation in order to secure a loan larger than what is actually required for the business. It could be perpetrated by one or more participants‚ including the borrower‚ real estate
Premium Fraud Mortgage Mortgage loan
Chapter 9 notes Mortgage markets exist to help individuals‚ businesses‚ and other economic units to finance the purchase of a home or other property. Characteristics of mortgage markets: 1. Mortgage loans are always secured by the pledge of real property—land or buildings— as collateral. 2. Second‚ mortgage loans are made for varying amounts and maturities depending on the borrower’s needs. 3. Issuers (borrowers) of mortgage loans are typically small‚ relatively unknown financial entities. 4. Secondary
Premium Mortgage Mortgage loan
Dilemma When people go to find out how to get a loan for a new mortgage they usually look around go to their bank or to a mortgage company to get a loan for their new house. So they sit down and talk to the mortgage broker or loan officer about what they have to do to get a loan for the amount they need to purchase their new house. They end up finding out that they have to do a background check‚ also they have to fill out papers is that ask them some personal information about their credit history
Premium Ethics Mortgage Great Depression
CHAPTER 18 Investment Decisions: Ratios Test Questions 1.Income multipliers: a. are useful as a preliminary analysis tool to weed out obviously unacceptable investment opportunities. 2.The overall capitalization rate calculated on a potential acquisition: a. is the reciprocal of the net income multiplier. 3.The operating expense ratio: c. expresses operating expenses as a percent of effective gross income. 4.The equity dividend rate: b. expresses before-tax cash flow as a percent of the
Premium Mortgage Mortgage loan
_______________________________________________ Abstract The need to encourage house or homeownership has been in the government’s strategic plan since 1934‚ however‚ the current financial policies and practices in the housing finance and the mortgage market has characterized by minimum flow of capital in the secondary mortgage market‚ confusion on the main control authority and various ill practices. This fact has necessitated various changes in the house and homeownership financial. This study collected both primary and secondary
Premium Mortgage Mortgage loan
2006 Increase (Decrease) Volume Rate Net Year Ended December 31‚ 2006 Compared to Year Ended December 31‚ 2005 Increase (Decrease) Volume Rate Net (In Thousands) Interest-earning assets: Mortgage loans: One-to-four family Multi-family‚ commercial real estate and construction Consumer and other loans Mortgage-backed and other securities Federal funds sold and repurchase agreements Federal Home Loan Bank stock Total Interest-bearing liabilities: Savings Money market NOW and demand deposit Liquid
Premium Interest Mortgage loan Mortgage
Mortgage Crisis: Are a Lack of Ethics to Blame? Anyone who has been following the news is aware of the degree to which the housing slump has affected the overall economy. In the mid-1990’s‚ in an effort to help a person achieve the “American Dream” of home ownership‚ the Department of Housing and Urban Development partnered with the mortgage industry to develop several new type of loans. Products such as variable rate mortgages‚ low or no down payment plans‚ and financing in excess of a property’s
Premium Ethics Loan Mortgage loan
my desk is in the centre of the mortgage banking division‚ I could tell long before he got to me that I was the one he was looking for. And‚ frankly‚ the folder he dropped at my desk was the last thing in the world I expected to see.” Robin Lall is a 26 year old assistant broker in the mortgage banking division of Old Delhi Finance Trust‚ a relatively small interstate bank located in Northern India. Robin’s branch has regional responsibility for home mortgages in Northern Virginia and the Washington
Premium Mortgage Vice president Bank
European sovereign-debt crisis. What caused it? Mortgage brokers‚ acting only as middle men‚ determined who got loans‚ then passed on the responsibility for those loans on to others in the form of mortgage backed assets (after taking a fee for themselves originating the loan). Exotic and risky mortgages became commonplace and the brokers who approved these loans absolved themselves of responsibility by packaging these bad mortgages with other mortgages and reselling them as “investments.” Thousands
Premium Mortgage loan Mortgage Loan
History Going back to a time period when the fear of this very event occurring can help to put it all in perspective. Y2K was very real for millions of Americans who feared technology would be distorted or shut-down because of a numerical change in years. People stocked up on supplies with a long shelf life; many took their money from their checking or savings accounts. The panic was real‚ and this current situation is easily relatable. Although the big banking bailout of Greece was a result
Premium Subprime mortgage crisis Enron Finance