has historically been a nation that focuses on individual achievements, low-income families have had few opportunities to buy homes. Social Darwinism was first coined by Herbert Spencer, an English philosopher in the 19th century (Bethell, 1999)
In fact, 63% of all the wealth owned by minority families and 67% of the wealth owned by non-elderly low-income families consists of the equity in their home. Public policies that provide home loans to low-income people tend to the promotion of individual good and public good (DiNitto, 1999)
Low Income Home Loans as Public Policy Since World War II, the United States government has developed public policies that aim to increase opportunities for home ownership through direct housing grants, loan guarantees, and targeted tax breaks (Dye, 2001)
The themes of class and status play a major role in this area of public policy. Fundamentally, for home loans, "creditworthiness" is an educated guess about a particular borrower's likelihood to pay their mortgage (Kim, 2002)
All rights, not specifically delegated to the government, remained with the people - including the common-law provisions of private property. When drawing up the Constitution, America's Founding Fathers recognized that there would be times when an individual's right to hold property free from governmental intrusion must be balanced with the fact that a particular public improvement was important to the overall public good (Loop, 2000)
Home ownership is a major aspect of class structure in the United States, and homeowners have traditionally been highly regarded in society. The Founding Fathers believed that private property ownership, as defined under common law, pre-existed government (Pecquet, 1987)
The government plays a key role in helping to reach this goal, with its policies that include FHA mortgage insurance, an important source of financing, especially for minority and lower income homebuyers; homeownership vouchers; the HOME program; CDBG; housing counseling; and other efforts. Homeownership has been a key part of the American dream for a long time, but it has eluded many low- and moderate-income people who currently rent but would prefer to own (Stein and Eakes, 2000)
Due to the fact that many of the factors on which creditworthiness is judged depend on a borrower's income and assets, lower-income and minority borrowers usually have a harder time obtaining credit, especially for home mortgage loans (Kim, 2002). Lower-income and minority loan applicants generally have less savings than middle and upper class borrowers, for example, and are less likely to be able to afford a substantial down payment (Wessel, 2001)
Loan Sales and Other Credit Risk Management Techniques "a technique of selling loan assets, also known as an assignment in equity. (Cranston, 1997, p
Foreign exchange swaps allow the firm to insure against this type of liquidity shortage. (Holmstrom & Tirole, 2000, p
" A number of bankers routinely attempt to minimize their risk exposure; while others on the other hand, argue that banking risky borrowers presents opportunity for gain. (Powell, 2004) Some banks, touting high credit standards, eke out conservative returns on razor-thin margins, while other banks implement loose credit standards, which consequently produce more profitable shareholder returns from higher-risk activities
banking organizations in the latter half of 1990s and has since become more widely used in the United States and abroad." (Stiroh, 2004) Research purports SBCS complements increased small business credit availability in the following, but not limited to, arenas: 1) increasing the quantity of credit extended; 2) increasing lending to relatively opaque, risky borrowers; 3) increasing lending within low-income areas; 4) lending over greater distances; and 5) increasing loan maturity
Implementation and administration of the chosen alternative (s), with 5. Dynamic monitoring and feedback systems to better assure long-term effectiveness and efficiency of the ongoing effort (Theil & Ferguson, 2003) The use of insurance as a risk management tool, accepted by a majority of countries, bears roots based on the religion of the country involved
And if we let the rates go up, it's going to make it more difficult for people to go to college." (Nowicki, 2012) According to Ron Paul, a Republican candidate (Bachmann, et al
As more resources are invested in getting students to educate themselves and as access to colleges and education is made easier, there will be a higher probability, through higher student numbers that some of the bright minds in the country will emerge, and help in technological and other advancements. According to (Barrow & Rouse, 2005): "Changes in technology increased the productivity of high-skilled workers relative to low-skilled workers, raising the relative demand for the former
If the admission procedures are stringent enough, such students would not have been admitted to the college in the first place, and in turn the number of people completing their college degrees would go back up. (Bound, Lovenheim, & Turner, 2007) The rate in the six years preceding 2009 has averaged a pitiful 56% implying that the critics of the federal loan programs have a point and that the students who are not serious about education, are getting into the system and making a mockery of state paid grants
Less needy students still can qualify for an "unsubsidized" Stafford loan, but they are responsible for the interest that accumulates while they are in school. (Chaker A
Less needy students still can qualify for an "unsubsidized" Stafford loan, but they are responsible for the interest that accumulates while they are in school. (Chaker A
There are others, such as David Orr who also argues that it is a result of the rat race to grab as many economic resources as possible (Orr, 1991), and the greed that "those with a college degree will earn, on average, 75% more during their lifetime than those with just high-school degrees." (Day & Newburger, 2002) There are indications that university enrollment in a span of twenty years, 1986 and 2006 has increased by 48%, which is an extraordinary number, but really, does it suggest that things have improved and that there is higher literacy in society? Does it show that resources are being utilized as needed? But have those enrollment increases been an entirely good thing? There are calls for a national discussion on higher education, and rather than having all politicians follow the bandwagon blindly, of building up their public image by granting loans to students, who will then become their allies for the rest of their lives
Milton Friedman also argues along similar lines, where he indicates that there is a minimum level of education till which provision of education by the state is needed for what he defines as the 'neighborhood effect'. (Friedman, 1955) He implies that a certain level of literacy is needed among people in a society in order to uphold democracy and in order to comprehend the rights and duties that are available to them