Study Document
Financial Crisis and Predatory Lending Term Paper
Pages:6 (1854 words)
Sources:5
Subject:Economics
Topic:Financial Crisis
Document Type:Term Paper
Document:#33283523
Many laws have been successful in restricting such practices in order to avoid a similar situation in the future. Today, "when a mortgage borrower wins a rescission case in court, the bank loses the right to foreclose, and has to give up all profits from interest and fees on the loan" (Carter, 2012). However, just a few years after predatory lending caused so much damage, there are already movements to once again make it a possible scenario for contemporary lenders. The research posits that "under the Fed's new proposal, however, borrowers would be required to pay off the balance of the loan before the bank loses its right to foreclose -- that means borrowers could still lose their homes, even in cases where banks have broken the law" (Carter, 2012). Only time will tell whether or not law makers attempt at reining in financial predators will actually work. As of right now, we are still within the depths of the recession and have a long way to go before we can think of ourselves as fully healed.
Conclusion
Typically, "new-home building and sales of existing homes historically have been leading economic indicators, pointing the way to robust recovery after a downturn. In the current cycle, however, that hasn't happened" (Geffner, 2012). In fact, the housing market is now a scary realm to many was just trying to piece their lives back together. Hopefully the future will bring with it financial stability for all Americans, from the average everyday person to the multinational corporations.
References
Baker, Dean. (2008). The housing crash recession: How did we get here? PBS. Web. http://www.pbs.org/now/shows/412/housing-recession.html
Carter, Zach. (2012). FED moves to gut predatory lending regulation. Huffington Post. Web. http://www.huffingtonpost.com/2011/01/04/federal-reserve-rescission-regulation_n_804334.html
Geffner, Marice. (2012). Why the housing crash remains a wreck. BankRate. Web. http://www.bankrate.com/finance/mortgages/why-the-housing-crash-remains-a-wreck-1.aspx
Holt, Jeff. (2009). A summary of the primary causes of the housing bubble and the resulting credit crisis: A non-technical paper. The Journal of Business Inquiry, 8(1), 120-129.
Van Steenwyk, Jason. (2012). Understanding predatory lending: Did…
Sample Source(s) Used
References
Baker, Dean. (2008). The housing crash recession: How did we get here? PBS. Web. http://www.pbs.org/now/shows/412/housing-recession.html
Carter, Zach. (2012). FED moves to gut predatory lending regulation. Huffington Post. Web. http://www.huffingtonpost.com/2011/01/04/federal-reserve-rescission-regulation_n_804334.html
Geffner, Marice. (2012). Why the housing crash remains a wreck. BankRate. Web. http://www.bankrate.com/finance/mortgages/why-the-housing-crash-remains-a-wreck-1.aspx
Holt, Jeff. (2009). A summary of the primary causes of the housing bubble and the resulting credit crisis: A non-technical paper. The Journal of Business Inquiry, 8(1), 120-129.
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