Effects of Loan Recycling Issues on Small Financial Institutions in the United States (2008-2012)

Topics: Loan, Debt, Mortgage loan Pages: 12 (2883 words) Published: April 30, 2013
CONDUCTED BY PROFESSOR
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CONDUCTED BY PROFESSOR
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LINCOLN UNIVERSITY

LINCOLN UNIVERSITY

PROPOSAL TITLE
EFFECTS OF LOAN RECYCLING ISSUES ON SMALL FINANCIAL INSTITUTIONS IN THE UNITED STATES
(2008-2012)

PROPOSAL TITLE
EFFECTS OF LOAN RECYCLING ISSUES ON SMALL FINANCIAL INSTITUTIONS IN THE UNITED STATES
(2008-2012)

PREPARED BY:
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ZZZZ ZZZZZ 2012 PREPARED BY:
YYYY YYYYY
BBBB BBBB
ZZZZ ZZZZZ 2012

CONTENTS:

1. INTRODUCTION
2. REVIEW AND RELATED LITERATURE
3. METHODOLOGY
4. PRELIMINARY RESULTS
5. REFERENCES

INTRODUCTION

Have you ever think of any bank practices that is done without any prior notices to its customers even it is highly related to such individuals’ private information? What would be the reactions and results of this practice for all related parties? Our group wrote a project proposal on Effects of Loan Recycling Issues on Small Financial Institutions in The United States between 2008 and 2012. Amongst all of the banks’ services, the loan sales are the only one that is not announced to a borrower before its completion. What is the loan recycling? Who is transferring it to whom? What types of loans can be transferred? Loan recycling jargon refers to as sales of loan between financial institutions. Practically, the giant banking icons such as Bank of America, Wells Fargo, Citibank, and Chase bank sell their mortgage loans to smaller financial institutes including Spring Leaf Financial Servicing, CONIX, and many more. The loans that are predicted as default of payment for certain reasons tend to be the “goods to be sold” which are mainly mortgage loans. 1. Statement of the problem

Loan recycling causes significant troubles to the smaller financial institutions due to the delinquency rates and higher tendency of bankruptcy. Statistically, one out of seven sold loans is converted to the foreclosure or short sales rather than smooth monthly payments. 2. Purpose of the study/significance of the study

The purpose of our study is to find the issues that may cause economic difficulties in the sector due to loan recycling. The significance of the study would be determined as to find better solutions to reduce the burden of loan buyers. 3. Research questions

* Is the loan sale helpful to keep US economy healthy?
* Which troubles that the loan buyers are facing can be eliminated? * What would be the borrowers’ reactions against this loan transfer?

Continue proposal text here. Continue proposal

INTRODUCTION

Have you ever think of any bank practices that is done without any prior notices to its customers even it is highly related to such individuals’ private information? What would be the reactions and results of this practice for all related parties? Our group wrote a project proposal on Effects of Loan Recycling Issues on Small Financial Institutions in The United States between 2008 and 2012. Amongst all of the banks’ services, the loan sales are the only one that is not announced to a borrower before its completion. What is the loan recycling? Who is transferring it to whom? What types of loans can be transferred? Loan recycling jargon refers to as sales of loan between financial institutions. Practically, the giant banking icons such as Bank of America, Wells Fargo, Citibank, and Chase bank sell their mortgage loans to smaller financial institutes including Spring Leaf Financial Servicing, CONIX, and many more. The loans that are predicted as default of payment for certain reasons tend to be the “goods to be sold” which are...
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