Question

Consider the sub-prime mortgage fallout. These mortgages offered loans to borrowers who posed a high credit risk. In many cases, the home loans were given for amounts people couldn't otherwise afford. If you had been a lender during this time, would your personal values impacted your ability to do your job? Would you have allowed borrowers to move forward with these loans considering the effect on the economy and the personal finances of these individuals?

Answer 1

A lender: This is termed as an individual,private or public financial institution that makes its funds available to the borrower with an expectation that the funds will be paid.The repayment includes any interest rates or fees.

In the case where I have been a lender during this time,my personal values will have a great impact to do my job.My values relating to integrity in lending plays a critical role (having ethical and strong moral principles) so as to treat any borrowers with professionalism and with respect creating a more enhanced relationship with them.

The values regarding to being credibility,which is part of values will be applied to scrutinize the ability of the borrowers to repay and meet their obligations to repay what they have borrowed.

There is also need to focus on trustworthiness of the borrowers which is part of my values.Being trustworthy means being following ones commitment.This will be scrutinized effectively to check if the borrowers will be able to meet the repayment deadline as quickly as possible.

The aspect of the patience of the borrowers,will also be checked.This is part of me having to tolerate challenges,delays and any unexpected challenges.I will expect my clients to act the same and show their willingness to use the funds for the best use possible.

In the context of the borrowers moving on with applying the funds in regards to the current situation of the economy and personal finances of the individuals will be another consideration that will be checked.

It is credible to realize that dimensions of the borrowers regarding to current global economy which is more improved there is need for growth of businesses and thus allowing application for loans will be fundamental.

The individual aspects regarding to the amount of capital that is committed for lending will be another consideration will play the critical decision making process.

The dimensions of the borrowers creditworthiness will also be checked to ensure that the goals and needs of the required resources to be borrowed.

The integrity of the borrowers will be another attribute that will be checked regarding to how they manage their resources that they will borrow.

Finally checking on the borrowers credit history will be another important history for the consideration for the lending process,since each and every history shows a true replicate of the employee ability to repay the loans.