Explain What Is Likely to Happen to the Rate of Mortgage

question 26

Essay

Explain what is likely to happen to the rate of mortgage loan default given the following: "For years home values across the country have increased on average 3 to 4% percent each year. Mortgage lenders have come to expect this to always be the case and so begin to offer mortgages with little to nothing down and not requiring PMI insurance. An economic slowdown occurs hitting a few areas of the country harder than others. Home values across the country begin to decrease with some areas seeing decreases of as much as 10%."

---

Definitions:

Ethical Decision-Making Model

A framework used to guide individuals in making choices that are morally right and fair in various situations, especially in professional settings.

Ethical Decision

A choice that is made based on considerations of what is morally right and fair, often involving a dilemma where interests, values, or principles conflict.

Normative Considerations

Evaluations or judgments based on standards or norms of behavior that dictate what should be considered acceptable or desirable.

Principles And Values

Fundamental beliefs that guide or motivate attitudes or actions in personal and professional life.