What were the responsibilities of the mortgage brokers to borrowers? To lenders? To investors? How well...

What were the responsibilities of the mortgage brokers to borrowers? To lenders? To investors? How well did they fulfill their responsibilities? Why?
Did some subprime lenders behave unethically? If so, how? Whose interests did the subprime lenders have a responsibility to represent? Did they adequately represent those interests?
What could be done to prevent future blowups like the one that occurred in the subprime market 100 word minimum

Expert Solution

jeff jeffy answered 4 months ago

how does interest rate determine from a lenders, borrowers, investors and economy point of view?

Mortgage lenders require the borrowers to make a 20% down payment. Otherwise, private mortgage insurance (PMI)

Mortgage lenders require the borrowers to make a 20% down payment. Otherwise, private mortgage insurance (PMI) is often required by mortgage lenders when the borrowers have less than a 20% down payment.1 Explain what type of asymmetric information problem these requirements help to solve?

Mortgage brokers generally provide their services free of charge to interested borrowers, and are instead compensated...

Mortgage brokers generally provide their services free of charge to interested borrowers, and are instead compensated by lenders. a) How might this arrangement lead to a conflict of interest? b) What legal rights does a client of a mortgage broker have? (Outline the key requirements of relevant legislation, regulation and industry/professional codes of practice that apply to relationship management).

how are interest rate determined ? how is interest rate different form a lenders, borrowers and...

how are interest rate determined ? how is interest rate different form a lenders, borrowers and investors point of view? and what are the role of interest rate within our financial system?

How lenders and borrowers benefit from an amortization schedule. How the time value of money equation...

How lenders and borrowers benefit from an amortization schedule. How the time value of money equation can be modified to include more complex calculations.

Explain why you think that borrowers of money and lenders of money view inflation differently. How...

Explain why you think that borrowers of money and lenders of money view inflation differently. How do borrowers normally react to high inflation rates? How do lenders normally react to high inflation rates? Discuss whether you feel that there are some positive (good) aspects to high inflation. If you don’t feel that there are any, explain why.

With shareholders and lenders (i.e. investors in bonds issued by a bank) in mind, what are...

With shareholders and lenders (i.e. investors in bonds issued by a bank) in mind, what are potential explanations for the fair value option requiring the seemingly counter intuitive accounting treatment for fluctuations in fair values of financial liabilities.

What are the concerns (considerations) of a project’s long–term lenders and equity investors?

In early 2007 the Mortgage Lenders Association reported that homeowners were defaulting on their adjustable-rate mortgages...

In early 2007 the Mortgage Lenders Association reported that homeowners were defaulting on their adjustable-rate mortgages in record numbers. The foreclosure rate for that particular year was 1.45%. To see if there has been any change in the foreclosure rate, the association plans to sample 237 homeowners to see if they are in danger of defaulting on their loan. Describe the sampling distribution of the sample proportion of homeowners with adjustable-rate mortgages who are in danger of defaulting on their...

What is diversification and how does it impact the preferences of investors, as well as investments...

What is diversification and how does it impact the preferences of investors, as well as investments that fit into various risk categories? How might portfolio composition change as you age?

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