Financial Law Foreign Banks and Mortgage Lending

Question: Discuss about theFinancial Lawfor Foreign Banks and Mortgage Lending. Answer: Discussion The current study is based on Bill Jones a public servant who has recently been married to Mary. After getting married, they are in need of a new house and therefore they need to take a mortgage in order to purchase a house. Therefore, the couple has referred to a mortgage broker Fred who will help them in getting their mortgage sanctioned. The actions that are required by Fred Smith in order provide services to Bill and Mary requires various actions and operations. Fred firstly needs to know about the financial status of the couple and their past history about any loans or mortgages taken earlier. The term of repayment is also made ware as it predicts the reputation of the client (Bohle 2014). After getting to know the financial and personal information of the couple, Fred undertakes the procedure to initiate the loan procedure (Dagher and Kazimov 2015). The first step involves defining the consumer credit and making the couple aware of the credit contract, which means defining the interest rate, the term of loan, type of loan and the fees that need to be paid in order to get the loan sanctioned. The next activity involves defining the legislation under the National Consumer Credit Protection Act 2009 (Massey et al. 2016). Fred ensures that the couple has adequate information to make an informed selection. Fred even in forms the couples about the process they can undertake in case of any disputes. The Responsible Lending Provisions are even explained so that they are aware of all the legal obligations for undertaking the mortgage. The next step involves Responsible Lending where Fred makes enquiries about the financial situation, objectives and needs. The next involves the various steps to verify the information gathered from the couple and make preliminary and final evaluation about the contract suitability (Scharfstein and Sunderam 2014). The credit is provided under a credit contract and all the obligations regarding the loan process are explained to them. The knowledge about the regulations of loan of the financial institution is given so that the couples are aware of all the obligations. Fred needs to undertake these actions in order to provide an efficient service to Bill and Mary. Reference List Bohle, D., 2014. Post-socialist housing meets transnational finance: Foreign banks, mortgage lending, and the privatization of welfare in Hungary and Estonia.Review of International Political Economy,21(4), pp.913-948. Dagher, J. and Kazimov, K., 2015. Banks? liability structure and mortgage lending during the financial crisis.Journal of Financial Economics,116(3), pp.565-582. Massey, D.S., Rugh, J.S., Steil, J.P. and Albright, L., 2016. Riding the Stagecoach to Hell: A Qualitative Analysis of Racial Discrimination in Mortgage Lending.City Community,15(2), pp.118-136. Scharfstein, D. and Sunderam, A., 2014. Market power in mortgage lending and the transmission of monetary policy.September, https://people. hbs. edu/asunderam/Mortgage,20.