White Collar Crime

Topics: Mortgage, Subprime mortgage crisis, Subprime lending Pages: 3 (1100 words) Published: January 12, 2013
The “Subprime Mortgage” mess that made in a short-time many unemployed and robbed of the shortterm fortunes and it came to light the true danger and nature of White Collar Crime and its perpetrators. These many individuals who were captains of some of the most wealth wielding and making investment companies in the world, did not accomplish their ability to fool the nation and the authorities of the Government by luck or without certain accomplices knowing, greedy and those who were ignorant to themselves desiring only to get a mortgage for that home so sought after as the very symbol of American hood, that so many for generations have been sold on. There were many instances of Fraud committed during the crisis but there were very few who would be convicted of the White Collar Crimes accomplished because of the very creative nature of its inventors and the inability of the Governments Prosecutors to prove it in the courts. To describe the elements the “Subprime” lending mess, it must be defined so that a basic understanding van be had to gain the focus of this discussion. In finance, subprime lending means making loans to people who may have difficulty maintaining the repayment schedule. These loans are characterized by higher interest rates and less favorable terms in order to compensate for higher credit risk. Proponents of subprime lending maintain that the practice extends credit to people who would not have access to the credit market. The main thing that innovations in the mortgage market have done is to let in the excluded: the young, the discriminated-against, the people without a lot of money in the bank to use for a down payment. It is considered that this form of risky investment in giving mortgages and the selling and buying of these investments and lax standards for under writing them led to this mess. There are many roles that were played by individuals and not merely greedy Banks. This is a White Collar Crime where no one walked into someone’s home...
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