...commercial real estate (CRE) crash of the early 1990s was that problems associated with massive over-supply can plague the industry for many years. The lesson that will be learned in the current crash (with CRE prices declining by 40-50%, or more, from their peaks, the term crash is, once again, appropriate) is that problems emanating from the financing side—in particular, a massive deterioration in underwriting standards and a concurrent rise of excessive leverage—can lead to problems of a similar (or greater) magnitude, even without supply problems. While most attention in commercial real estate today is focused on the dramatic deterioration in term loan performance (i.e. the performance of loans prior to maturity), we believe that a potentially even more troublesome issue is the extent to which loans originated during the 2005-2007 period will encounter problems refinancing at maturity. To date, this issue has largely been dismissed with the vague and, in our view, naive observation that lenders will simply extend the maturity dates of loans that fail to qualify for refinancing. However, the scale of this problem is virtually unprecedented in commercial real estate, and its impact is likely to dominate the industry for the better part a decade. At its core, the issue is fairly straightforward: The dramatic weakening in underwriting quality that began in 2005, along with compressing cap rates and ballooning leverage, led to rapidly rising commercial real estate prices...
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...SUMMARY Experienced, versatile office professional with background in mortgage, loans, real estate, financial and general office and customer service environment. Key strengths include attention to detail, strong organization and time management skills. Effective in reorganizing, streamlining and strengthening financial operations to maximize performance and profitability. Self-motivated, creative individual who works well independently and as a team member. Demonstrate the ability to think strategically, work effectively and produce results. Skills include: * Excellent analytical and reasoning skills. * Customer Problem Resolution * Proficient in using technology to solve company-wide challenges. * Microsoft Excel, Word and One Note * Outlook * Publisher & PowerPoint * Adobe Acrobat & Photoshop * Bilingual (Vietnamese and English) PROFESSIONAL EXPERIENCE Starwood Vacation Ownership Quality Control Analyst 12/2014-Present * Audit and/or daily review of new timeshare loan documents * Review performance and make process improvement recommendations for the queue maintenance, or other new timeshare loan processes. * Develop tracking tracking system for employee errors and subsequent management reporting * Thorough knowledge of loan documentation, collateral evaluation, lien perfection, local, state and federal regulatory requirements * Provides guidance and support in order to...
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...Is Kenya ripe for securitization of real estate? Defination of securitization Securitisation is the issuance of debt certificates that are secured by cash flows from different kinds of assets. The issued securities are called Asset-Backed Securities (ABS). In essence a pool of payment claims are packaged and are made to securities in order to create a secondary market for the underlying receivables or other various illiquid assets. Securitisation is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or collateralized mortgage obligation (CMOs), to various investors. The principal and interest on the debt, underlying the security, is paid back to the various investors regularly. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS). Therefore, securitization of real estate is the pooling of real estate assets as underlying assets securing a debt, which is issued to investors in return for cash flows from the underlying real estate assets. The illiquid real estate assets that generate a constant cash flow are formed into a tradable security and are floated on the debt market. Securitization process In its most basic form, the process involves two steps. 1. A company with loans...
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...segregation not promote community interest or protect ownership rights. Consequently, governmental and private leasing prohibition often significantly restricts a title holders exercise of property rights and use of capital. Additionally, rental restrictive covenants result in undue hardship for owners and potential tenants alike. Further, these frequently encountered universally accepted private laws disguised as property use tools work to control who is allowed to reside in a particular neighborhood not prohibit value impacting undesirable usage. More, the preclusion of leasehold estate alienation ultimately infringes on the freedom to contract, decreases availability of rental housing, and artificially raises market rents, as well as functions to segregate specific demographic groups (Boyack, 2014). However, establishing constitutional violation is arduous. More, the courts consider leasehold estate prohibiting covenants presumptively enforceable agreements. "Despite the involvement of governmental and quasi-governmental entities in CIC formation, courts unanimously treat CIC covenants as purely private, voluntary, and presumptively enforceable agreements" (Boyack, 2014, Judicial Treatment of...
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...The adverse effects of the financial crisis on commercial banks and securities firms The financial crisis had a devastating effect on the U.S. banking/investment industry. The crisis stems from the real estate market and subprime lending practices. Housing(incl. commercial) prices were very high as part of a real estate boom from the 1990s and the investment and banking industry lowered lending standards to allow unqualified buyers to take out mortgages. Real estate loans were spread throughout the financial system in the form of CDOs and other derivates in order to disperse risk, however as owners defaulted banks had significant write offs that forced them to try to raise additional capital or go bankrupt. A commercial bank by definition is a financial institution that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and certificates of deposit. Therefore when the borrowers defaulted on the mortgage loans commercial banks exposure was not as high given the breadth of business across a number of investments/services. Also although not too stringent, there was some government regulation around their business practices. Which was unlike the investment banks that by definition include underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients. They had taken on very...
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...Qualifications * Substantial experience in loan processing, mortgage banking and loan support. * Knowledgeable of Fidelity System, Gateway System, Talon System, PLS, LSAMS, and FORTRACS. * Deep knowledge of real estate transactions, processes and principles. * Operational knowledge of all documentation required for loan processing. * Familiarity about lending regulations followed at state and federal level namely Reg Z and Respa. * Solid understanding of FNMA/FHLMC and industry standard guidelines. * Skilled at operating office equipment, Microsoft and computer applications. * Ability to identify and manage exceptions and omissions appropriately. * Ability to interact effectively in verbal and written medium with Bank officials, customers and outside agencies. * Strong clerical skills, organization and planning skills. Experience ADT – Billing Integrity Specialist October 2014 – Present * Review and check contracts and supporting documents. * Code and process contracts into required electronic format. * Audit on-line contracts for accuracy and completeness. * Load information onto prescribed databases. * Verified, updated and corrected source documents. Solutionstar Mortgage - Texas Taxes/Title Ops April 2013 - July 2014 * Researched property taxes on homes for delinquency and current amount. * Assigned order orders to different abstractors in Texas, for FHA, foreclosure, Bringdown, Deed in Lieu...
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...While the U.S. supreme court had ruled against municipal and residential segregation laws in 1917, The National Association of Real Estate Boards – 1914 – ethics code that forbid members from “introducing into a neighborhood … members of any race or nationality … whose presence will clearly be detrimental to property values” heavy fines for violations banks refused to provide mortgages to blacks, and community members signed contracts agreeing not to rent or sell their homes to “any person other than one of the Caucasian race” HOLC – financing of mortgage – high marks were given to neighborhoods that were homogeneous, which was defined as containing “American business and professional men” - Lowest grade – assigned the letter D or the color red – went to neighborhoods that had declined with “an undesirable element” FHA – with the creation, adopted the HOLC plan – “the most important single cause of residential segregation” - Established to protect and expand the housing industry - Underwriting Manual from 1936 – FHA mandated, “if a neighborhood is to retain stability, it is necessary that its properties shall continue to be occupied by the same social and racial classes FHA exhorted segregation and enshrined it as public policy GI bill of Rights – 1944, offered veterans a real dream: a low-interest no-money-down mortgage McCarthy – public housing is socialism Government subsidies provided by GI bill, innovations in mass production, and banks “busting with money” -...
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...business until 1984. Through the Insurance (Amendment) Ordinance 1984 and Insurance Corporations (Amendment) Ordinance 1984, the government allowed operation of insurance companies in the private sector. In 1990, the government further allowed private sector insurance companies to underwrite 50% of public sector business and the remaining 50% was kept reserved for Sadharan Bima Corporation. Private insurance companies were also given option to insure 50% of their re-insurable business with any local or foreign insurance companies. SBC distributes 50% of all public sector insurance businesses to private general insurance companies on an equal basis. SBC underwrites private sector business and competes with private companies in the underwriting business. Private insurance companies have the option to re-insure 50% of their re-insurable business with any local or foreign insurance companies. But in practice, they do not exercise the option. Instead, they re-insure 100% of their re-insurable business with SBC, which offers better terms and conditions. SBC also provides insurance coverage to some non-traditional (sometimes, non-profitable) businesses like livestock rearing,...
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...Subprime Meltdown: American Housing and Global Financial Turmoil The real estate and financial crisis was caused by a significant rise in mortgage delinquencies and foreclosures, leaving repercussions for banks and financial markets globally. The subprime mortgage crises started to become apparent in 2007 resulting in a weakening global financial system. An estimated 80% of US mortgages held by the subprime borrowers were adjustable rate mortgages. Once housing prices reached their peak during the middle of 2006, the steep decline that followed made refinancing difficult. Adjustable rate mortgages began to reset at higher rates resulting in increasing mortgage defaults. Financial firms which held most of the securities backed with subprime mortgages were left with securities with no value. Ultimately, credit around the world tightened as the capital in many banks and US government sponsored enterprises were losing value. What caused the crises can be attributed to a number of factors; the failure of homeowners to meet their mortgage payments, the adjustable rate mortgages resetting along with the extensive lending. In 2008 the mortgage industry played a crucial role in the recession when an estimated 1.5 million homeowners defaulted on payments lending to foreclosure by 2009. As a result, the mortgage industry has restructured limiting individuals to purchase homes. From 2000-2006, home foreclosures began to rise. Thus the government began to investigate the practices...
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...The Subprime Mortgage Crisis and What to Do about It A Review of the Literature The fuse for the subprime financial shock was set early in this decade, following the tech-stock bust, September 11th, and the invasions of Afghanistan and Iraq. The subprime mortgage crisis is a historic turning point in our economy and our culture. The disruption in our credit markets is already of historic proportions and will have important economic impacts. More importantly, this crisis has set in motion fundamental societal changes – changes that affect our consumer habits, our values, our confidence to the future, and our psychological status. After this financial crisis, our economic went downturns and worsen now. When we talk about or hear about the subprime mortgage crisis, to fully understand the crisis help us to avoid the crisis happening again in the future. This literature review considers different opinions of the subprime mortgage crisis by responding to the following questions: 1. What are subprime mortgages? 2. How did the subprime mortgage crisis happen? 3. What are the causes of the subprime mortgage crisis? 4. Was the subprime mortgage crisis in the U.S. totally unexpected? 5. What to do to avoid it happening again in the future? By answering these questions, we can have understandings of the subprime mortgage crisis and find out the solutions to the crisis. When Americans taking advantage of the easy credit conditions, we take for granted the problems behind the credit...
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...Current financial crisis and banking industry Institute of affiliation Name Current Financial Crisis and Banking Industry The current financial crisis traces its origin in the United States of America, which has affected many banks worldwide. This financial crisis especially in commercial banks has been very costly and has led to bankruptcy of major banks around the globe. Reinhart etal. (2011) described the financial crisis as an equal opportunity menace, which affects poor and rich countries. The financial crisis derives its origin from the public and private sectors. It comes in various sizes and shapes and it can spread across borders within a short time, therefore requiring coordination of policies aimed at reducing its impacts. Financial crisis usually consist of a set of events which include disruption of financial intermediation, changes in asset prices and credit volume, large scale balance sheet deviations and the increased need for government support in form of recapitalization and liquidity support. Various theories have been formulated focusing on the origin of the financial crisis which recognize the contribution of movements in assets and credit markets. This paper will focus on Normal Accident Theory and Disaster incubation theory. Perrow (1981) formulated the Normal accident theory. In his thesis, he stated that serious accidents are inevitable, especially in special technological systems. His main focus was whether the decision...
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...With the IPO, especially with the obtained capital from stock conversions, TierOne expanded its operations into areas outside of the thrift’s traditional geographical market. For example, in 2004, the bank engaged in high-risk types of lending in regions such as Las Vegas, Florida and Arizona, which were experiencing unusual, rapid escalation in market values. From 2002 through 2005, TierOne opened or acquired nine loan production offices (LPO), covering six states. The primary purpose of the LPOs was to originate construction and land development loans. This shift in the corporation’s strategy made the bank particularly vulnerable to the fallout from the financial crisis, as these areas were hit the hardest by the precipitous fall in real estate prices, which began in late 2006 and early 2007. Thus TierOne failed because of significant loan losses from its concentration of construction and land development loans. A huge problem was that TierOne’s board and management did not provide effective...
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...began to decline in USA. Borrowers found themselves unable to afford higher monthly payments ,then default. This places downward pressure on housing prices. 2、Speculation Speculation in residential real estate has been a contributing factor. Media widely reported condominiums being purchased while under construction, then being sold for a profit without the seller ever having lived in them. Speculative bubbles are fueled by "contagious optimism, seemingly impervious to facts, that often takes hold when prices are rising." Speculative borrowing has been cited as a contributing factor to the subprime mortgage crisis. 3 、High-risk mortgage loans and lending /borrowing practices Lenders began to offer more loans to higher-risk borrowers. The risk premium required by lenders to offer a subprime loan declined. Lenders have offered increasingly risky loan options. Mortgage brokers, while profiting from the home loan boom, did not examine whether borrowers could repay. Mortgage fraud by borrowers increased. 4、Securitization practices Securitization, combined with the high ratings, meant that mortgages could be originated almost at will, with the risk shifted from the mortgage issuer to investors at large. Issuers had incentives to lower their underwriting standards to increase their total profit....
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...Investment Banking, Institutional Client Services, Investing & Lending and Investment Management. As of December 2011, it had offices in over 30 countries, including office in financial centers worldwide. Mission Goldman Sachs Group use Business Principles rather than a Mission Statement: 1. Our clients' interests always come first. Our experience shows that if we serve our clients well, our own success will follow. 2. Our assets are our people, capital and reputation. If any of these is ever diminished, the last is the most difficult to restore. We are dedicated to complying fully with the letter and spirit of the laws, rules and ethical principles that govern us. Our continued success depends upon unswerving adherence to this standard. Vision A commitment to integrity, team work and the pursuit of excellence is at the core of everything we do History Goldman Sachs was founded in 1869 by German immigrant Marcus Goldman when he opened a commercial paper business on New York City's Pine Street. The...
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...Investment Banking in USA and Bangladesh Scope for Innovation Md. Shakhawat Hossain1 Abstract I discuss briefly the purposes and activities of Investment banking in USA and Bangladesh. The overall performance and structures of investment banks in USA and Bangladesh are shown in this report. Financial system of a country is always getting advanced and complex. Banking system in today’s world has evolved over long period of time. There have been lots of ups and downs or we can call financial crisis in this time period. One of the heavily regulated sectors in world economy is banking sector. This report focuses on how a bank performs in advanced economy and moderately advanced economic situation. There is a significant scope for Bangladeshi investment bank to compete in global market. Several studies have shown that investment banks play a major role along with government and in public finance. 1. East West University, Department of Business Administration. This project preparation is for academic and final year submission to project supervisor Quazi Sagota Samina. 1 The Evolution of Banking Banks are just one part of the world of financial institutions, standing alongside investment banks, insurance companies, finance companies, investment managers and other companies that profit from the creation and flow of money. As financial intermediaries, banks stand between depositors who supply capital and borrowers who demand capital. Given how much commerce...
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