The contemporary housing assistance plans involve the comparatively flexible grants for the state as well as the local governments. This is done so as to assist the homeless people, build up reasonably priced housing and offer support to the first-time buyers. This was also done to encourage community development as well as more planned, direct support programs that would assist in providing low-priced apartments and even rental vouchers to the deprived families, managed through quasi-public, local public and the private intermediaries (McCarty & Et. Al., “Overview of Federal Housing Assistance Programs and Policy”). The main objective of the paper is to analyze the housing policies adopted by the federal government related to the mortgage and funding system. With this concern, the discussion of the paper will intend to identify the strategies implemented by the federal government persuade lenders and low-income borrowers in dealing with highly risky loans and mortgages. Furthermore, the paper will analyze the role of Fannie Mae and Freddie Mac in the recent sub-prime crisis of 2008. Government Policy Intervention The condition of extreme and mispriced mortgage liability is the main reason behind the current boom in the housing markets. It is not possible to understand the unusual character of this particular cycle without recognizing the parts that links the policies on the demand-side as well as the supply restrictions. The boost in the housing prices was positively aggravated by the policies that facilitated cheap credit, especially for borrowers belonging to the low-income group. With the increasing prices, the enterprises those were government-sponsored, started becoming quite insistent in assisting lending activities. This significantly contributed to the rising prices of households (Glaeser & Gyourko, “Rethinking Federal Housing Policy”). During the early period of 1980s, the subprime lenders such as Household Finance Corp along with thrifts like Long Beach Savings and Loan provided funding services for home equity. They also provided services frequently for second advances to borrowers whose credit record was still to be recognized or even had financial records that were disturbed. At times it mirrored setbacks like divorce, unemployment, medical emergencies etc. Rates of interest charged on the subprime mortgages with considerable collateral which was the house were not as soaring compared to the car loans and also quite lesser than the credit cards. The benefits of the mortgage were coagulated and intensified in the year 1986 over the various other varieties of debt with the assistance of the Tax Reform Act. This act excluded taking away of the interest payments on the customer loans, whereas, the subtraction was retained in relation to the payments for mortgage interests (Stanford University “Subprime Lending”). Throughout the period of 1980s and the beginning of 1990s, prior to computerized “credit scoring”, a statistical method that was utilized to gauge the credit value of a borrower, initiated the evaluation of risk and mortgage lenders along with the subprime lenders depended on other attributes at the time of underwriting mortgages. During the period of 1990s the mortgage companies as well as the banks along with the securities organizations of the Wall Street
Federal Government Housing Policies Table of Contents Table of Contents 2 Introduction 3 Government Policy Intervention 4 About Fannie Mae & Freddie Mac 6 The Role of Fannie Mae & Freddie Mac in the Financial Crisis 7 Conclusion 8 Works Cited 9 Introduction A crucial role is played by the federal government in supporting the construction of housing financially and offering ownership as well as rental support for households with lower income since the 1930s…
A Comparison of Public Budgets Public budgets are instruments of the government at the federal, state, and local levels. They are instruments in the execution of government spending policies and a forecast of expenditures and revenues. All of them combined contribute to the national economy and are affected by policy measures and practices at each level.
While there has been some anemic recovery in the US economy from the 2007-2009 global recession the housing market remains a serious problem. For the most part the economic impact has been well documented analyzed and quantified the sociological implications are less clear.
The FEMA usually takes over as soon as a state of emergency is declared by the governor of the state; the formal request of the governor expressed to the president would authorize the FEMA to respond to the disaster (FEMA, 2012a). Where the disaster or emergency occurs in a federal building or to a federal resource, the request from the governor would not be needed.
The Level of the Different Agencies in the Administrative Structure of the Federal Government The United States Army Corps of Engineers (USACE) is an executive department agency of the United States federal government. It is a federal agency that deals with public works in supporting the country.
Nevertheless, the Hippocratic Oath presupposes that each doctor and Medicaid establishment should be devoted to all citizens in their problems with the health. Thus, the federal government should provide healthcare services to all citizens of the United States; however, this trend is still impossible due to the drawbacks of the capital system and a lack of the socio-political reformation.
The three basic contracting methods are known as FAR 13, FAR 14, and FAR, 15. The above categories are grouped depending with the amounts involved and the extent to which legal regulations are to be followed. This article looks at the contents of FAR 13, FAR 14, and FAR, 15 as contained in the rulebook of the federal agencies.
The demand curve is of great use to measure complete consumer surplus in a market. It shows the eagerness of a consumer to buy a good at various prices (Gillingham & IMF, 2008). Consumers are eager to buy a commodity up to the level where the marginal gain of consuming the commodity is equivalent to its cost.
In the wake of policy rates approaching and ultimately getting stuck in their lower bounds, such central banks have had their balance sheets replace the interest rates as the instrument of the main policy. The result of the above move was that the estimated models over the economic crisis period with short-term interest rates.
?s three key functions are providing and maintaining an efficient and effective payment system, supervising and regulating banking operations throughout the country and developing the country’s monetary policy (Federal Reserve Bank of Dallas, n.d.). This paper will focus on
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