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%."

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Definitions:

Social Entrepreneurship

The practice of developing, funding, and implementing solutions to social, cultural, or environmental issues through a business model.

Moral Management

An approach where managers make decisions and lead in ways that are ethical and focused on the well-being of all stakeholders.

Amorally

A way of behaving or making decisions without considering the morality or ethical implications.

Human Resource Foundation

The basic principles and practices upon which the management of people in an organization is built, including recruitment, selection, training, and development.