What Reforms Would You Recommend to a Mortgage Lender in Terms

question 8

Essay

What reforms would you recommend to a mortgage lender in terms of employee incentives to ensure it avoids Countrywide's mistakes? In general,how do you motivate salespeople who work on commission (as many mortgage brokers did in the run-up to the 2008 financial crisis)to sell products that are in their customers',rather than their own,interests?

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Definitions:

Amygdala

A small, almond-shaped cluster of nuclei located deep within the temporal lobe of the brain, involved in processing emotions such as fear, anger, and pleasure.

Cortex

The outermost layer of the brain, involved in numerous high-level brain functions such as thought, memory, and decision-making.

Carroll Izard

An American psychologist known for his contributions to the understanding of emotions, including the development of the Differential Emotions Theory.

Basic Emotions

Fundamental emotions that are universally experienced by humans, such as joy, sadness, fear, disgust, surprise, and anger.