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Subprime Loans:The under-the-Radar loans that felled a market

I would appreciate your expertise on how to set up a blog. The title will be "Main Task: Interpret Ethical Issues with Subprime Loans"

It will do the following:
1) Summarize the concept of subprime loans and the risk they pose to the lender and borrower.
2) Critique the role of leadership decision-making on the subprime loan financial crisis.
3) Evaluate subprime loans with the notions of social responsibility. Compare and contrast the resulting consequences for these actions.
4) What measures have been taken since that time?
Support your blog with at least five scholarly resources.

Solution Preview

Did Board Configuration Matter? The Case of US Subprime Lenders. Academic Journal By: Muller-Kahle, Maureen I.; Lewellyn, Krista B.. Corporate Governance: An International Review , September 2011, Vol. 19 Issue 5, p405-417, 13p 1)Summarize the concept of subprime loans and the risk they pose to the lender and borrower,

CEO Behavior and Subprime Mortgage Crisis Author: Chang, Guangdi; Chen, Fulwood Author Affiliation: National Taiwan U Science and Technology; National Taiwan U Science and Technology Source: International Journal of Business and Finance Research, 2013, v. 7, iss. 3, pp. 13-25

The Subprime Crisis and African Americans. Academic Journal By: Phillips, Sandra. Review of Black Political Economy. Sep2010, Vol. 37 Issue 3/4, p223-229. 7p

Subprime Lenders Target Women Unfairly. Academic Journal By: Tucker, Patrick. Futurist , May/June 2007, Vol. 41 Issue 3, p7-7, 1p Abstract

REFORMING THE LAW OF ADHESION CONTRACTS: A JUDICIAL RESPONSE TO THE SUBPRIME MORTGAGE CRISIS. Academic Journal By: Smith, Shelley. Lewis & Clark Law Review. Fall2010, Vol. 14 Issue 3, p1035-1121. 87p

1)Summarize the concept of subprime loans and the risk they pose to the lender and borrower

The concept of subprime loans is flawed from conception because the loans are high risk loans targeting borrowers who lack strong credit histories and are in traditionally lower income sectors of society. The loans are predatory in their conceptual framework as they are given to those who have characteristics associated with high probabilities of default. This ensures that subprime loans are more likely to default than less risky loans. These loans are detrimental for borrowers as they target borrowers who can't afford to pay the complex repayment terms that aren't fully explained nor understood by those who are borrowing because of the deliberate complex writing of contractual law for subprime loans. This results in loss of homes for borrowers who take subprime loans more often than not as these borrowers experience jumps in their house payments that are astronomical. A person's house payment can go from $1200 a month to over $3000 with subprime loans leaving the borrower with no way to pay or keep their home and subsequently ruining their future credit. The premise of these loans is rooted in greed and corruption as many ...

Solution Summary

This solution discusses the concept or subprime loans, and the role of leadership decision-making in a subprime loan financial crisis.