How to Stop the Foreclosure Crisis

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“How to Stop the Foreclosure Crisis” I was very excited to learn that a scholarship was available that focused strictly on ending the foreclosure crisis in this country. Coming from a real estate lending background affords me the kind of first-hand experience necessary in order to invent a process that will work in a real world setting. I am no longer employed in the field due to the banking crisis. Our current economic problems are also the main reason why I am back in school and trying to complete my Juris Doctorate degree. Although I no longer work in the financial industry, I do have many ideas that when properly formatted into lending policies would carry the force and effect necessary to end the foreclosure crisis. In addition to fixing an overwhelming amount of foreclosures, these policies will also help to rebuild our consumer base which I consider to be the linchpin to fixing our overall economic crisis as well. My background and work experience in the mortgage lending industry began in 2002 when I took a job as a wholesale loan officer for a small family owned brokerage firm. The word wholesale basically means that the company I worked for had access to an infinite number of mortgage related products from any number of different financial institutions. For a fee, usually a percentage of the borrowed amount, a consumer had access to lower interest rates than if they had visited a larger local bank like WellsFargo or Bank of America. What I learned working for this company is that anything can purchased for the right price. For example, if a borrower could not or did not want to prove his/her income they would pay a higher fee and “state” their income on the file without having to send any documents that verified the “s... ... middle of paper ... ...true way they can save themselves in the long run. First, the money being used is ours anyway. TARP money is tax payer money and it should be re-invested in us. Second, they are 90% responsible for the position they currently find themselves in and should have some skin in the game. Last, I go back to my earlier statement about consumer base. This is the only way to affect the amount of people necessary to save the consumer base. Without them, our banking system is setting itself up for a secondary collapse. Banks will have to start investing in the future again and right now that future is us. Works Cited Scott, Robert E. “FED Up.” Economic Policy Institute (2001): < http://www.epi.org/publications/entry/issuebriefs_ib148/>. “Government Acts and Regulation Definitions” Google search: < http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act>.
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