Discussion

1. You are the SVP of the residential department and the President of the bank has asked you to make a decision on if your bank will offer subprime mortgages.  What will your report say to the President?

2. The GFE and Truth-in-Lending Disclosures were replaced in 2015 by the Loan Estimate and Closing Disclosure. Upon review of the new forms, what do you like and dislike about them? Explain why.

Assignment

Visit Fannie Mae’s Monthly National Housing Survey (web site info on page 482 in your text book). Based on the most recent month’s analysis, what is the current state of the housing industry in the US and what are the prospects for the rest of the year?