Country Wide

Individual assignment COUNTRYWIDE FINANCIAL: THE SUBPRIME MELTDOWN 1. Are subprime loans an unethical pecuniary instrument or are they ethical but utilize in a way that created ethical issues? Ans: As going through the case, in my opinion,subprime loans is an ethical in slightly ways but for the most of the parts its got misused. star way that I think that the subprime was misused was the fact that when the miserliness began to slow down, people started working more for little money but still. Subprime continued to lend money to increasingly untamed borrowers. An early(a) cause of misusing is that they allowed real estate appraisers to inflate the rate of a home to insure loans would go through and the nationwide would increase its growth rapidly.

The countrywide continued helping the minorities in lending money to buy a house who had less assent points or who were not qualified for conventional loans, over again on favor to it, the congress granted the equal credit opportunity act 1974, which means that the loan would not be rejected due to race, sex, origin or any other discriminating factor. It helped as an equal opportunity to all borrowers. seemingly everyone was now able to get a subprime loan. But the sharp fall down of the economy, people started working for less money. The damage of health insurance, gas prices increased , peoples became unable to pay their house payments. Despite of this fact still the financial companies continued in lending money, builders kept on building houses. And that resulted in capacious number of houses which the borrowers were unable to afford. Than , bank started taking over the houses , on the dramatic decrease of the housing demand banks lost a huge amount of money. If you want to get a intact essay, order it on our website: Orderessay

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