United Mortgage is a mortgage company locates in Fayetteville, North Carolina. Primary objective is to offer mortgage financing to the community., 80% percent of United Mortgage loans are Government loans extent to soldier station in Fort Bragg North Carolina. United Mortgage is a small mortgage company. Concentrate in offer VA financing to soldier in Fort Bragg, first time homebuyer, second home, and investment mortgage loan. . Pine Valley Mortgage offers different programs to please the customer needs.
The main goal is to offer the lowest fixed rate and the personal services homebuyer deserve. Building long lasting relationship with current and past customer. How we measure the risk between one buyer and an other goes by credit, debt income ratio, work stability, able to have some savings, any previous bankruptcy, foreclosure or judgement. By taking caution we are avoiding and preventing ahead of time a possible foreclosure.
Recommend a preventive solutions that incorporates risk mitigation
The best tool is to open the channels of communication with employees and communicate and keep the update with the new regulation and guidelines regarding mortgage financing.
2) Any discrimination to extend credit because race, color, religion, age its consider a violation
They are 3 categories of control in relationship to risk.
1) Preventive Control: Can reduce the risk that united Mortgage can encounter. In order to prevent mortgage fraud united Mortgage have a new policy to required every single homebuyer to sign a 4506T (tax transcript) with the purpose that the tax return to be review prior to submit to the underwriter. If there is fraud committed united Mortgage rather stop the file before that gets to the underwriter hands and affect the business relations and good name of the company And file charges against the person who infringed the law. Preventive control eliminates and reduces the risk to be involved in scandals of mortgage fraud.
2) Detective Controls once the risk is identified take action to it. Provide a mortgage fraud class. How to identify mortgage fraud.
3) Corrective Controls are used to mitigate and to correct the problem in this situation to educated the Loan officer how to identified mortgage fraud.
Pine Valley Mortgage must implement certain goals. The company is audit once in a while by the Banking commission to make sure that the RESPA guidelines are met. Making sure that the appropriate form are disclosed and sign by the homebuyers. If there any violation united Mortgage will receive a report, which is, turn to the Branch Mananger with the intention that in the second review United Mortgage improve the weakness.
With that in mind, it is important to understand a couple of concepts before analyzing and determining the effectiveness of that document. Although people do not always realize it, the purchase of a home is one of the b...
Enterprise is an internationally known car rental, with more than “7,000 neighboring and airport locations throughout North America and Europe. Enterprise is the largest car rental brand in North America, well-known for its great rates, award-winning customer service and picking up local car rental customers at no extra cost” (About). Enterprise offers great leadership opportunities to its employees and helps them become entrepreneurs. They provide over 1 million job opportunities worldwide, this private company thrives its self in customer service because they thrive on being personable by creating relationships not just transactions
The Public Service Enterprise Group, Inc. of today began its life as Public Service Corporation in 1903, by the amalgamation of more than 400 gas, electric and transportation companies in New Jersey. The then Attorney General of New Jersey Thomas McCarter was named the Corporation's first president (his brother Robert McCarter succeeded him as the Attorney General) and held he the position until 1939. The McCarter Highway in Downtown Newark is named after him.
Target Corporation must also ensure the its accounting procedures prevent fraud occurrence. The most effective method for combating potential fraud is to develop substantive internal accounting policies. For the most part, the company has done a good job in establishing the principles and procedures necessary to prevent material
After the housing bubble burst, everyone involved in the process was subject to severe criticism. From the realtors to the land title insurance agents to the banks, the housing industry underwent a major overhaul. In order to make sure that what happened less than a decade ago doesn’t happen again with the same veracity, the American Land Title Association (ALTA), which guides the conduct of land title insurance agents, published a “Best Practices” manual. ALTA seeks to guide its membership on best practices to protect consumers and to meet legal and market requirements. This paper will lay out the best practices used by ALTA for title insurance and settlement.
Leading up to the crisis of the housing market, borrowers got mortgages without understanding the terms. Banks were giving out loans to people the banks weren't sure could pay the money back. The closer to the crisis, the higher the frequency of illegitimate loans and mortgages. Because there were so many mortgages on houses that could not be paid back, millions of mortgages were foreclosed on, and the houses we...
A majority of mortgage defaults that Americans used were on subprime mortgage loans, which were high-interest-rate loans lent to people with high risk credit rates (Brue). Despite knowing the risks, the Federal government encouraged major banks to lend out these loans to buyers, in hopes, of broadening ho...
The Sub-Prime Mortgage Crisis of 2008 has been the largest financial crisis to take place since the end of the Great Depression. It was the actions of individuals and companies that caused this crisis. For although it could have been adverted, too much money was being made by too many people in place of authority to think deeply on the situation. As such, by the time actions were taken to attempt to rectify the situation, it was already too late. Trillions of dollar of tax payers’ money was spent trying to repair the situation that was caused by the breakdown of ethics and accountability in the private sector. And despite the government’s actions to attempt to contain the crisis, hundreds of thousands lives were negatively affected before, during, and after this crisis.
comes to buying a home, whether you are a first time home buyer or venturing into buying your
Disappointment in financial risk management takes various structures, the greater part of which are exemplified in the present emergency. For instance, risk appraisals are regularly taking into account chronicled information, for example, changes in house costs after some time. Yet, fast financial advancement, including securitized subprime contracts, has made such information untrustworthy. Also, a few risks are missed on the grounds that they are covered up in excessively complex reports that leaders cannot get it (Stoian & Stoian, 2016).
This is the problem with the burst in the housing market. The third major factor that is causing the mortgage crisis is, mortgage fraud.
Firm-specific Risk is the probability of financial loss to an investor because of factors related to a specific company, within a specific business sector. Firm-specific Risk is also known as Non-systemic risk or Unsystematic risk and is related to a company’s inability to generate earnings. Firm-specific risk should be considered in addition to Market Risk when considering the total risk of an investment. The best protection against firm-specific risk is investment diversification, which lowers the probability in relation to a specific company.
Mortgage loans are a substantial form of revenue for the financial industry. Mortgage loans generate billions of dollars in the financial industry. It is no secret that companies have the ability to make a lot of money by offering a variety of mortgage loan products. The problem was not mortgage loans but that mortgage companies were using unethical behavior to get consumer mortgage loans approved. Unfortunately, the Countrywide Financial case was not an isolated case. Many top name mortgage companies have been guilty of unethical behavior. Just as the American housing market was starting to recover from its worst battering since the Great Depression, a new scandal, an epidemic of flawed or fraudulent mortgage documents, threatens to send not just the housing market but the entire economy back into a tailspin (Nation, 2010).
Company policy requires the cash to be received before or after rendering a service. Due to some business reasons, the management has been extending credit to clients contrary to the guidelines.
With the use of the above mentioned mode of communication the company will be able to achieve the following: