8/9/2019 Business Ethic : Chapter 3
1/16
Ethical dilemma : A diferent perspective
Honest Team’s member :Nur Hidayah Ibrahim
Nurul Atikah LokmanSiti Amirah Shaudi
Hallan Hashim
Mohd Khairul Hisyam he !ahaya
"a#e :$$%$&
8/9/2019 Business Ethic : Chapter 3
2/16
Foreclosures, Predatory
Lending & the Ethical Dilemma
8/9/2019 Business Ethic : Chapter 3
3/16
IN'()*+'I)N
Mortgage company dealing ith many!oreclosures" Houses are orth #$%$' less then hat they paid" They
can still a(ord the mortgage, but is itorth it)
*ll sta( meeting to discuss problem"
+enior leaders remind eeryone thata mortgage is a legal contract" Multibillion dollar bailouts leae people asictims" Media coerage is negatie
to ban-s" Mort a e holders are
8/9/2019 Business Ethic : Chapter 3
4/16
8/9/2019 Business Ethic : Chapter 3
5/16
,+ES'I)N . :
/! homeoners made poor 0nancialdecisions ta-ing too much e1uityout o! their houses or buying at the
rong time % Do the predatorylending practices o! the ban- andmortgage companies 2usti!yal-ing aay !rom those
mortgages)
8/9/2019 Business Ethic : Chapter 3
6/16
'his is because it is a legal binding
contract bet/een
the Mort#a#e Service ompany act
/ithin their capacity and their o/npolicy0
8/9/2019 Business Ethic : Chapter 3
7/16
Ho/ever to be more ethical or !air to the homeo/ner1 the Mort#a#eService ompany could gierecommendation to thehomeo/ner0
8/9/2019 Business Ethic : Chapter 3
8/16
D i s c u s s
• L i s t e n 2 E 3 p l a i n
E n 1 u i r i e s •
S e e k 4 o r H o u s i n # * e v e l o p e r
a t t e n t i o n
P r o p o s e d a l t e r n a t i ,
e s • S h o r t s a l e s • L o a n m o d i 5 c a t i o n
• * e e d % i n % l i e u o 4 4 o r e c l o s u r e
8/9/2019 Business Ethic : Chapter 3
9/16
)"'I)N ') A6)I* 7)(EL)S+(E
3" +H45T +*LE+ 'he lender allo/s you to sell the house 4or less
than the outstandin# loan amount1 takes theproceeds and 4or#ives any remainin# debt
.0 L4*6 M4D/F/7*T/46
8ank /ill help borro/ers #et their mort#a#esad9usted
0 DEED%/6%L/E8 4F F45E7L4+85E
8e able to voluntarily ;#ive back; your
property to the lender
8/9/2019 Business Ethic : Chapter 3
10/16
8/9/2019 Business Ethic : Chapter 3
11/16
!ES0
It is because buyers are e3pect to #et
#ood return on their investmentrather than losses0
8/9/2019 Business Ethic : Chapter 3
12/16
)"'I)N ') KEE" 'HEH)+SE
A process o4 obtainin# a
ne/ mort#a#e (educe monthly payments1lo/er the interest rates1 takecash out o4 the e3istin# home4or lar#e purchases or chan#emort#a#e companies0
4PT/46T4 +*;E
THEH48+E
5EF/6*67/6<
P54
8/9/2019 Business Ethic : Chapter 3
13/16
,+ES'I)N
8/9/2019 Business Ethic : Chapter 3
14/16
)NSE,+ENES )7 7)(EL)S+(E
-0 /MP*/5ED THE 75ED/TEfect your credit score
.0 M4;/6< 74+T
+tilities1 deposits1 movin# trucks1 and other e3penses
0 D/FF/78LT T4
8/9/2019 Business Ethic : Chapter 3
15/16
)NL+SI)N
Make sure homeo/ners understandall o4 the options and conse@uencesbe4ore decided to /alk a/ay 4rommort#a#e payment
8/9/2019 Business Ethic : Chapter 3
16/16
'HANK !)+