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  • Lakhan Aggarwal Umesh Yadav

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    SanchitKumar
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    This document outlines problems with the housing market and mortgage lending practices, stakeholders to blame, and proposed solutions. Key problems discussed are stated income loans, flawed collateralized debt obligations, and lack of scrutiny of piggyback loans. Stakeholders blamed include government regulators, financial institutions, and rating agencies. Proposed changes are verifying borrower information independently, assessing true creditworthiness, and tying banker bonuses to loan performance. An outlined solution model proposes assessing borrowers' loan history, finances, and credit score to determine an appropriate interest rate before disbursing a loan.

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    MIS

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    Mis

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    This document outlines problems with the housing market and mortgage lending practices, stakeholders to blame, and proposed solutions. Key problems discussed are stated income loans, flawed collateralized debt obligations, and lack of scrutiny of piggyback loans. Stakeholders blamed include government regulators, financial institutions, and rating agencies. Proposed changes are verifying borrower information independently, assessing true creditworthiness, and tying banker bonuses to loan performance. An outlined solution model proposes assessing borrowers' loan history, finances, and credit score to determine an appropriate interest rate before disbursing a loan.

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    17 views7 pages

    Lakhan Aggarwal Umesh Yadav

    Uploaded by

    SanchitKumar
    This document outlines problems with the housing market and mortgage lending practices, stakeholders to blame, and proposed solutions. Key problems discussed are stated income loans, flawed collateralized debt obligations, and lack of scrutiny of piggyback loans. Stakeholders blamed include government regulators, financial institutions, and rating agencies. Proposed changes are verifying borrower information independently, assessing true creditworthiness, and tying banker bonuses to loan performance. An outlined solution model proposes assessing borrowers' loan history, finances, and credit score to determine an appropriate interest rate before disbursing a loan.

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    © All Rights Reserved
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    of 7

    HSBC

    Lakhan Aggarwal
    Umesh Yadav

    INTODUCTION

    PROBLEMS
    Stated Income flow.
    Financing Flow 80-20 (FICO Score to be amended)
    Collateralized debt obligation (CDO)
    Flawed CDOs.
    Clause of House pricing Falling.
    KYC norms & Bankers responsible
    Piggy backs loans to be scrutinized.

    STAKEHOLDERS TO BE BLAMED
    Government SEC & FED policies.
    Financial Banks
    Rating Agencies

    CHANGES REQUIRED
    Distinguish between where borrower had paid money.
    Clause of house price falling.
    Clause of interest rate fluctuation.
    Reasonable salary growth as per industry in which person
    working.
    Credit worthiness of guarantor.

    SOLUTION MODEL
    Buyer

    Loan & Bank account history


    Family size
    Major purchase done
    KYC

    Verified by independent agency borrower info.


    Eligibility

    FICO Score

    Will be checked
    CDOs forms others banks for buying

    True Credit
    worthiness

    Rate of interest
    chargeable

    Disburse the
    loan

    Finding the CDO to be bundled with and check it limits

    If person defaulted then employees bonus will be removed.

    THANK YOU!!!

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