Explore BrainMass

Reflections of the Subprime Mortgage Crisis

Write a memo (approximately 2 pages) in which you (a) reflect upon the ethics of the marketing tactics used by subprime mortgage companies referenced in the articles, (b) discuss the impact of these tactics on a neighborhood of your choice, and (c) provide some recommendations as to how mortgage companies might operate more ethically.

The paper will be assessed based on (a) the depth of your reflection on the ethics of the subprime mortgage lending tactics, (b) the depth of your discussion on the impact of these tactics on a neighborhood of choice, (c) the degree to which you suggested a remedy that is explained in sufficient detail, and (d) basic writing skills (good grammar, writing mechanics, etc.).

See the following articles:

Solution Preview

The lenders who ultimately lent funds to people with poor credit and a high risk of default were at the helm of the subprime mortgage crisis because of unethical lending practices that were enabled due to a lack of financial regulation and oversight, deregulation, and the risky securitization of mortgage loans to Wall Street investment banks and the global financial market. Changes in lending practices that were a result of two presidential administrations' attempt to increase homeownership, (Clinton and G.W. ...

Solution Summary

This solution discusses issues pertaining to the subprime mortgage crisis.