...MANC_C03.qxd 08/01/2007 10:42 AM Page 95 Atlanta Home Loan Case Study Atlanta Home Loan THE COMPANY Atlanta Home Loan (hereafter AHL) was a mortgage lending and financing company based in Atlanta, Georgia. Al Fiorini founded the company in April 2002 with an initial investment of about $40,000. He started operating the company from his home. Al had many years of experience in the mortgage lending industry. He had worked for several different companies and had also served a year as president of the Orange County Chapter of the California Association of Mortgage Brokers. Under his direction, AHL’s business grew rapidly in its first quarter of operation. By the summer of 2002, the company consisted of four telemarketers and eight loan officers, all of whom worked from their homes. “Telecommuting” was convenient for the employees because Atlanta was a large city with heavy traffic. Al established banking relationships that allowed AHL clients to borrow money at wholesale rates. The actual loan terms varied depending on the clients’ FICO scores.1 In summer 2003, banks might offer an AHL client with a very high FICO score (over 620) a rate of 6.25–6.75% on a fixed 30-year mortgage. This rate provided the bank with an operating margin of 1.5–2.0%. AHL earned a fee of 1.50% of the loan amount for every loan funded. This provided AHL with an average revenue per loan of $3,200. AHL bought leads from list brokers for $0.20 per name. These lists provided...
Words: 3536 - Pages: 15
...overview of paper 2) Introduction a. Introduction to the topic of subprime mortgages and the housing market bubble. b. Timeline of the crisis and housing market bubble burst 3) Discussion Content a. Definitions and background information on the following topics: i. Mortgages ii. Housing Market iii. Subprime Mortgages 1. Demyanyk, Y., & Van Hemert, O. (2011). Understanding the Subprime Mortgage Crisis. Review of Financial Studies, 24(6), 1848-1880. 2. Karikari, J., Voicu, I., & Fang, I. (2011). FHA vs. Subprime Mortgage Originations: Is FHA the Answer to Subprime Lending?. Journal of Real Estate Finance and Economics, 43(4), 441-458. doi.10.1007/s11146-009-9218-7. iv. Housing Market Bubble Burst b. Overview and causes of the subprime mortgage crisis i. Fixed mortgage versus floating 1. Demyanyk, Y., & Van Hemert, O. (2011). Understanding the Subprime Mortgage Crisis. Review of Financial Studies, 24(6), 1848-1880. ii. High risk mortgage loans and lending/borrowing practices 1. Peterson, C.L. (2009). Fannie Mae, Freddie Mac, and the Home Mortgage Foreclosure Crisis. Loyola Journal of Public Interest Law, 101-149. 2. Razaki, K.& Koprowski, W. (2012). The Paucity of Fed Enforcement Actions Leading to the Subprime Mortgage Crisis. Journal of Finance & Accounting, 1190-108. iii. Mortgage fraud and predatory lending c. Fannie Mae and Freddy Mac- financial institutions link to the subprime mortgage crisis...
Words: 970 - Pages: 4
...organized international and domestic rings, 8 street gangs, 9 terrorists, 10 drug traffickers, 11 real estate agents, 12 closing attorneys, 13 appraisers, 14 mortgage brokers, 15 The targeted victims distinguish mortgage fraud from predatory lending. In predatory lending cases the borrower is victimized by the illegal practices of the lender or its agents with respect to fees and disclosures relating to the cost of the loan. It is unfortunate that the media, consumer activists, legislators and law enforcement personnel frequently conflate mortgage fraud with predatory lending since it adds unnecessary confusion to an already complex issue and diverts attention and badly needed resources from the fight against true mortgage fraud. 2 The average “take” on a bank robbery is approximately $3,000.00. By contrast, the average straw borrower receives a “cut” of at least $10,000 and the orchestrator’s “take” in a mortgage fraud transaction frequently exceeds $100,000. In a few cases the orchestrator’s take was in excess of $1 million dollars, and in one, the perpetrator, who later fled the country, received $7 million in “profit” from the same-day flip of a mansion. 3 Financial Crimes Enforcement Network, “Mortgage Loan Fraud: An Industry Assessment Based on Suspicious Activity Report Analysis,” November 2006 at 10. http://www.fincen.gov/news_room/rp/reports/pdf/mortgage_fraud112006.pdf (accessed March 8, 2009). 4...
Words: 11793 - Pages: 48
...Case study Atlanta Home Loan A)Identify the devices (controls) that Al Fiorini used to control his business both before and after he went back to school. Classify each control as a results, control, or personnel/cultural type of control. Action control Before he went back to school i. Al monitored the activities of his loan offers by tracking the number of credit inquiries each requested. ii. Al closely monitored the loan application/lead ratio depending on the skill of the loan officer. After he went back to school i. Not letting Wilbur as a new partnership to sign the check written against AHL’s main bank account and Al must approve all outflow of cash from his company. Al also order to Wilbur and Letitia not to write any more checks without his permission. ii. Al monitor monitored tracked the employee head count, number of leads, credit inquiries, loan applications funded expenses and bank activity. By monitoring these actions Al can hold employees accountable for desired actions or undesired actions. iii. Al also had been monitoring the activity in the Bank of America (BofA) account on the internet from Los Angeles. Result control Define dimensions Al must define the right performance dimensions because the goal that are set and the measurements that are made shape employee views and cultural of what is important to do. Moreover, Al must explaining AHL’s dimensions on which result are desired such as profitability and others. Measuring performance This element...
Words: 1905 - Pages: 8
...- Tuesday, June 2, 2015 More older Americans are being buried by housing debt WASHINGTON — Al and Saundra Karp have found an unconventional way to raise money and help save their Miami-area home from foreclosure: They're lining up gigs for their family jazz band. They enjoy performing. But it isn't exactly how Al, an 86-year-old Korean War vet, or Saundra, 76, had expected to spend their retirement. Of all the financial threats facing Americans of retirement age — outliving savings, falling for scams, paying for long-term care — housing isn't supposed to be one. But after a home-price collapse, the worst recession since the 1930s and some calamitous decisions to turn homes into cash machines, millions of them are straining to make house payments. The consequences can be severe. Retirees who use retirement money to pay housing costs can face disaster if their health deteriorates or their savings run short. They're more likely to need help from the government, charities or their children. Or they must keep working deep into retirement. "It's a big problem coming off the housing bubble," says Cary Sternberg, who advises seniors on housing issues in The Villages, a Florida retirement community. "A growing number of seniors are struggling with what to do about their home and their mortgage and their retirement." The baby boom generation was already facing a retirement crunch: Over the past two decades, employers have largely eliminated traditional pensions, forcing workers...
Words: 601 - Pages: 3
...predatory lending? Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through coercive, deceptive, exploitative, or unscrupulous actions for a loan that a borrower can’t afford, doesn’t need, or doesn’t want. Predatory lending benefits the lender, not the borrower by ignoring or hindering the borrower’s ability to repay the debt. These lending tactics attempt to take advantage of a borrower’s lack of understanding about loans, terms, or finances in general (Krulick, 2014). Who can be targeted in these illegal practices? Predatory lenders typically target minorities, poor, elderly, and less educated people. People who need immediate cash are also targeted. For example people that need to pay medical bills, need to make a home repair, or someone that needs help making a car payment. People with credit issues or people who recently lost their jobs can be targets as well. The credit issues often disqualify borrowers from conventional loans or lines of credit but yet they have substantial equity in their homes. Predatory lending can take place in many forms including payday loans, car loans, tax refund anticipation loans, or any type of consumer debt. Over the past several years, predatory lending practices were prevalent in the area of home mortgages. Since home loans are backed by a borrower’s real property, a predatory...
Words: 3339 - Pages: 14
...by Zaza…………………………………………………….6-7 Trying to Revive ENO by Zaza ………………………………………………………………7-8 Conclusion………………………………………………………………………………………..9 References……………………………………………………………………………………….10 3 Research Paper: ENO ENO: The Last Days of ENO ENO Restaurant & Wine Bar was on the Atlanta, Georgia circuit for 10 plus years. It was a hit until the new owner step on the scene and the original owner had to give up on his passion since a teenage boy. ENO struggles to stay alive and revive itself with a new name, menu and swagger for the Elite socialite. In the mind of an entrepreneur failure is never an option. No entrepreneur wants to hear the word or talk about it. ENO got a second chance to shine in the spot light keeping its original name to include the new owner first name ENO by Zaza. Many would be impression that the new owner is a celebrity basketball player but was his star status good enough to score points to keep a business from failure. ENO was a European-Mediterranean influenced restaurant and wine bar. “ENO” derives from the ancient Roman term “Enotria” meaning “Land of Wine” Past and Present history has it that ENO means Wine. ENO was located at 800 Peachtree Street, Atlanta, GA, in the heart of Midtown in one of Atlanta’s most populated areas of town. ENO Restaurant & Bar opened in1998 starting off as a partnership between Doug Strickland and...
Words: 2242 - Pages: 9
...GUIDELINES FOR THE F1 VISA (STUDENT VISA) There are categories for student visa, F-1 and M-1. The F-1 visa permits students to enroll in a full-time course of academic study, leading to a degree such as the Bachelor, Master’s or Doctorate, Degree. The M-1 visa is for non-academic or vocational education for duration less than a year, and it includes courses of study in fields such as gemology, aviation, language studies, etc. All students joining Dilip Oak’s Academy apply for F-1 visa. The I-20 form issued by the university and a valid Indian passport are two essential documents for obtaining an F1 (student) visa. Your passport must be valid for at least six months from the date of travel. Once you receive I-20 forms from all the universities offering you admission you need to decide which university you wish to join. Of course even if you book a date for visa interview for a particular university, you can change that university before you appear for the visa interview, either through VFS or directly at the consulate. It is important to check the accuracy of the information printed on the I-20 form, specially: • date of birth, date of commencement, date of completion, duration of the course • full name, country of origin, name of the university and course In case of mistakes contact the university immediately and request for the corrected I-20 form. You can apply for student visa not earlier than 120 days before the date of commencement of your course as indicated on I-20 form...
Words: 5706 - Pages: 23
...the motto “The world,…did not need another “me-too” bank. The Bank started with no capital and no brand name, nonetheless Hill managed to differentiate himself from his competitors. Commerce Bank operates more comparable to retailers such as Starbucks and Home Depot rather than a typical bank. Many people choose said retailers over competitors due to buying into their brand. Commerce Bank has branded themselves as a bank that cares all about providing great service for their customers. One Strategy they have is encouraging customers to visits their branches by extended bank hours on the weekday and weekends. Due to this strategic approach in 2001 Commerce Bank experienced a growth of 40% deposit growth, whereas cumulative deposit growth in the United States was 5% in 2001. Commerce Bank method of attracted and retaining customers through outgoing friendly service was effective. Instead of remaining stagnant on customer service tactics, in 2002 Commerce Bank installed the “Retailtainment” program as a latest idea for WOW!ing customers. Competitors were beginning to adopt some of Commerce’s basic service offerings. Thus Commerce developed this program to continue to maintain their competitive advantage. The focus of this case analysis is to discuss how the company’s operation design supports Commerce’s competitive advantage, decisions critical to the bank’s success, motivation for the Retailtainment program, and pros and cons of Commerce expanding into other regions. My analysis...
Words: 2025 - Pages: 9
...at one time. These horse and buggies began to be common sight in cities and public transportation was born. Before the horse and buggy people were confined to the distance they could walk, so cities could not grow much. People lived in the central business district because that is where they worked. Now with the simple horse and buggy, people that can afford the transportation can move a mile or two out of the central city (Taaffe, Guathier, O’Kelly 2000). The big explosion of growth and increased ridership came at the turn of the century. The cause of this explosion was the electric streetcars that were installed in many cities. Whichever direction the rail lines were laid down and the streetcar moved, people began building their homes in that direction. The automobile was just getting its beginning and people were depending on public transportation to get them to work. As the streetcar's tracks expanded east and west, the city's population shifted that way as well. People did not need to be in walking distance of their workplace anymore, but in walking distance of the nearest pickup point of the streetcars (Taaffe,...
Words: 3211 - Pages: 13
...Environmental Inequality in the United States Introduction Minority and poor populations have been experiencing an unequal amount of exposure to various environmental hazards. The goal of this paper is investigate the situation at hand and provide an explanation to whether this treatment is ethical. Thus, in this paper, I will not only attempt to analyze reasons why these populations experience more pollution than other populations and the types of pollution that they experience, but I will also explore the solutions provided by other researchers on how to solve environmental inequalities. Previous research has been carried out to detect why most, if not all, of the polluting industries, such as power plants and waste facilities, tend to be located in minority and poor neighborhoods (Carter; Morello-Frosch; Pellow and Park; Bullard and Wright). Normally, people that live in low income neighborhoods will experience a disproportionately high amount of pollution compared to those living in high income neighborhoods (Morello-Frosch). Therefore, parks, trees, and outdoor recreational areas tend to be located in wealthy neighborhoods. Consequently, minority and poor neighborhoods tend to have the lowest ratios of parks-to-people (Carter). This means that there is a low amount of park space per 10,000 people. Other research shows that even if we ignore the level of income, minority neighborhoods, such as African American and Hispanic neighborhoods, will still experience higher levels...
Words: 3504 - Pages: 15
...Order Code RL33199 Data Security Breaches: Context and Incident Summaries Updated May 7, 2007 Rita Tehan Information Research Specialist Knowledge Services Group Data Security Breaches: Context and Incident Summaries Summary Personal data security breaches are being reported with increasing regularity. Within the past few years, numerous examples of data such as Social Security, bank account, credit card, and driver’s license numbers, as well as medical and student records have been compromised. A major reason for the increased awareness of these security breaches is a California law that requires notice of security breaches to the affected individuals. This law, implemented in July 2003, was the first of its kind in the nation. State data security breach notification laws require companies and other entities that have lost data to notify affected consumers. As of January 2007, 35 states have enacted legislation requiring companies or state agencies to disclose security breaches involving personal information. Congress is considering legislation to address personal data security breaches, following a series of high-profile data security breaches at major financial services firms, data brokers (including ChoicePoint and LexisNexis), and universities. In the past three years, multiple measures have been introduced, but to date, none have been enacted. This report will be updated regularly. Contents Introduction . . . . . . . . . . . . . . . . . . . ....
Words: 18803 - Pages: 76
...according to the Economist Intelligence Unit. Similarly, foreign visitors are sometimes left aghast at how, in Malthusian terms, the capital of Bangladesh manages to survive. Yet this host city for the upcoming T20 Cricket World Cup has, some would say, not only survived but prospered in recent years. * * * * More On this topic * Jeans maker backs push on ethical factories * Jeans maker launches push on ethical factories * Rana Plaza collapse one year on * Death sentences deepen Bangladesh political hostility IN International Property * Cape Town — return of the trophy hunters * Bund and beyond — Shanghai’s riverfront market * Rise of London’s superhomes * Strong housing market puts Atlanta in a new light Sign up now FirstFT is our new essential daily email briefing of the best stories from across the web “If you brought a property in Dhanmondi [one of the most affluent residential areas in Dhaka] for 6.45m taka [$83,000] in 2005, that would have increased five or six times by now,” says Kazi Inam Ahmed, owner of Gemcon City, a new estate agency. In fact, Goldman Sachs has placed Bangladesh in the “next 11’” category after the Bric countries and its “Mint” (Mexico, Indonesia, Nigeria and Turkey) group as an emerging economy. Furthermore, from out of its bewildering, densely packed capital, properties are now starting to emerge that can match such aspirations. In the north of the city, modern blocks that would not look...
Words: 11250 - Pages: 45
...Green Banking Initiative: Opportunities for Bangladesh Dr. S M Ahsan Habib Professor and Director (Training & Research), BIBM The paper was presented at a seminar on Green Banking at BIBM on October 14, 2010 Green Banking Initiative: Opportunities for Bangladesh I. Introduction Banks that were once seen only as profit motive institutions have been adjusting to a more demanding market and to a more conscious society over last two decades. An increasing number of banks around the world are going green by providing innovative green products that cover financial services to support the activities that are not hazardous to environment and help conserve environment. A green bank is also called an ethical bank, a socially responsible bank, or a sustainable bank. The exact meaning of all these titles may not be same however they cover a lot of common activities and perceptions. At least, all these banks- in various ways and at different times- have engaged themselves in making a better future (Merzio 2007). The approach to green banking (GB) varies from bank to bank, however, broad objectives of green banks are to use their resources with responsibility avoiding waste and giving priority to environment and society. The public concern of the state of environment has been growing significantly in the last few years, mostly due to apparently unusual weather patterns, rising greenhouse gases, declining...
Words: 16618 - Pages: 67
...LAW/421 Final Examination Study Guide This study guide will prepare you for the Final Examination you will complete in Week Five. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination. Week One: Introduction to Law Objective: Define the functions of law in society. 1. Precedent evolves from a. state and federal constitutions b. state and federal statutes c. the common law d. a combination of both state and federal statutes and common law Objective: Define the functions of law in society. 2. Once stare decisis and case precedent is established, a. it may be disregarded and overturned by a court if they deem such action appropriate b. it may not be disregarded by a court but may be overturned by state statute c. it may not be disregarded by a court or be overturned by state statute but may only be changed by amendment to the state's constitution d. it may not be disregarded or overturned once established and must be followed without exception Objective: Define the role of law in business. 3. In the cases of Heart of Atlanta Motel v. U.S. and Katzenbach v. McClung, the Supreme Court found illegal discrimination under the Civil Rights Act of 1964 by applying a. the Commerce Clause b. the Supremacy Clause c. the Necessary and Proper Clause d. the Equal Protection Clause Objective: Define the role...
Words: 2675 - Pages: 11
