1.
United States
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Forty-eight of the fifty states and the federal district are contiguous and located in North America between Canada and Mexico. The state of Alaska is in the northwest corner of North America, bordered by Canada to the east, the state of Hawaii is an archipelago in the mid-Pacific Ocean. The U. S. territories are scattered about the Pacific Ocean, the geography, climate and wildlife of the country are extremely diverse. At 3.8 million square miles and with over 324 million people, the United States is the worlds third- or fourth-largest country by area, third-largest by land area. It is one of the worlds most ethnically diverse and multicultural nations, paleo-Indians migrated from Asia to the North American mainland at least 15,000 years ago. European colonization began in the 16th century, the United States emerged from 13 British colonies along the East Coast. Numerous disputes between Great Britain and the following the Seven Years War led to the American Revolution. On July 4,1776, during the course of the American Revolutionary War, the war ended in 1783 with recognition of the independence of the United States by Great Britain, representing the first successful war of independence against a European power. The current constitution was adopted in 1788, after the Articles of Confederation, the first ten amendments, collectively named the Bill of Rights, were ratified in 1791 and designed to guarantee many fundamental civil liberties. During the second half of the 19th century, the American Civil War led to the end of slavery in the country. By the end of century, the United States extended into the Pacific Ocean. The Spanish–American War and World War I confirmed the status as a global military power. The end of the Cold War and the dissolution of the Soviet Union in 1991 left the United States as the sole superpower. The U. S. is a member of the United Nations, World Bank, International Monetary Fund, Organization of American States. The United States is a developed country, with the worlds largest economy by nominal GDP. It ranks highly in several measures of performance, including average wage, human development, per capita GDP. While the U. S. economy is considered post-industrial, characterized by the dominance of services and knowledge economy, the United States is a prominent political and cultural force internationally, and a leader in scientific research and technological innovations. In 1507, the German cartographer Martin Waldseemüller produced a map on which he named the lands of the Western Hemisphere America after the Italian explorer and cartographer Amerigo Vespucci
United States
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Native Americans meeting with Europeans, 1764
United States
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Flag
United States
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The signing of the
Mayflower Compact, 1620.
United States
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The
Declaration of Independence: the
Committee of Five presenting their draft to the
Second Continental Congress in 1776
2.
Mortgage loan
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The loan is secured on the borrowers property. Mortgage can also be described as a borrower giving consideration in the form of a collateral for a benefit, Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, in many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to them to purchase property outright. In countries where the demand for ownership is highest, strong domestic markets for mortgages have developed. According to Anglo-American property law, a mortgage occurs when an owner pledges his or her interest as security or collateral for a loan. As with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time, typically 30 years. All types of property can be, and usually are, secured with a mortgage. Mortgage lending is the mechanism used in many countries to finance private ownership of residential and commercial property. Although the terminology and precise forms will differ from country to country, the components tend to be similar, Property. The exact form of ownership will vary from country to country, Mortgage, the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property. Restrictions may include requirements to purchase insurance and mortgage insurance. Borrower, the person borrowing who either has or is creating an ownership interest in the property, lender, any lender, but usually a bank or other financial institution. Principal, the size of the loan, which may or may not include certain other costs, as any principal is repaid. Interest, a charge for use of the lenders money. Completion, legal completion of the deed, and hence the start of the mortgage. A closed mortgage account is said to be redeemed, many other specific characteristics are common to many markets, but the above are the essential features. Governments usually regulate many aspects of mortgage lending, either directly or indirectly, other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system
Mortgage loan
3.
Federal Housing Finance Agency
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In its role as regulator, it regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. It is wholly separate from the Federal Housing Administration, which provides mortgage insurance. One year after the law was signed, the OFHEO and the FHFB went out of existence, all existing regulations, orders and decisions of OFHEO and the Finance Board remain in effect until modified or superseded. FHFA director Lockhart transmitted a notice of establishment, for publication in the Federal Register on September 4,2008, the notice formally announced the agencys existence and authority to act. On September 7,2008, FHFA director Lockhart announced he had put Fannie Mae, the action is one of the most sweeping government interventions in private financial markets in decades. He further said that I attribute the need for todays action primarily to the inherent conflict and flawed business model embedded in the GSE structure, and to the ongoing housing correction. The suits, some of which name individual defendants, allege a variety of violations of securities law and common law. The suits seek a variety of damages and civil penalties, below is a list of the cases, with amounts of any settlements reached in 2013 and 2014. General Electric Company $6.25 million 2, UBS Americas, Inc. $885 million 4. J. P. Morgan Chase & Co. $4 billion 5, deutsche Bank AG $1.925 billion 6. Ally Financial, Inc. $475 million 7, credit Suisse Holdings Inc. $885 million 13. Barclays Bank PLC $280 million 14, first Horizon National Corp. $110 million 15. RBS Securities, Inc. $99.5 million 16, goldman Sachs & Co. $1.2 billion 17. On May 1,2013, President Barack Obama nominated Mel Watt as the next FHFA head, after Democrats eliminated rules allowing filibusters on executive branch nominations, the U. S. Senate confirmed Watt on December 10,2013. S
Federal Housing Finance Agency
–
Seal
4.
Great Depression
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The Great Depression was a severe worldwide economic depression that took place during the 1930s. The timing of the Great Depression varied across nations, in most countries it started in 1929 and it was the longest, deepest, and most widespread depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how far the economy can decline. The depression originated in the United States, after a fall in stock prices that began around September 4,1929. Between 1929 and 1932, worldwide GDP fell by an estimated 15%, by comparison, worldwide GDP fell by less than 1% from 2008 to 2009 during the Great Recession. Some economies started to recover by the mid-1930s, however, in many countries, the negative effects of the Great Depression lasted until the beginning of World War II. The Great Depression had devastating effects in both rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%, unemployment in the U. S. rose to 25% and in some countries rose as high as 33%. Cities all around the world were hit hard, especially dependent on heavy industry. Construction was virtually halted in many countries, farming communities and rural areas suffered as crop prices fell by about 60%. Facing plummeting demand with few sources of jobs, areas dependent on primary sector industries such as mining and logging suffered the most. Even after the Wall Street Crash of 1929 optimism persisted for some time, john D. Rockefeller said These are days when many are discouraged. In the 93 years of my life, depressions have come, prosperity has always returned and will again. The stock market turned upward in early 1930, returning to early 1929 levels by April and this was still almost 30% below the peak of September 1929. Together, government and business spent more in the first half of 1930 than in the period of the previous year. On the other hand, consumers, many of whom had suffered losses in the stock market the previous year. In addition, beginning in the mid-1930s, a severe drought ravaged the agricultural heartland of the U. S, by mid-1930, interest rates had dropped to low levels, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment were depressed. By May 1930, automobile sales had declined to below the levels of 1928, prices in general began to decline, although wages held steady in 1930
Great Depression
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Dorothea Lange 's
Migrant Mother depicts destitute
pea pickers in
California, centering on
Florence Owens Thompson, age 32, a mother of seven children, in
Nipomo, California, March 1936
Great Depression
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USA annual real GDP from 1910 to 1960, with the years of the Great Depression (1929–1939) highlighted.
Great Depression
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Crowd gathering at the intersection of
Wall Street and Broad Street after the
1929 crash
Great Depression
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Crowds outside the
Bank of United States in New York after its failure in 1931
5.
Foreclosure
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Formally, a mortgage lender, or other lienholder, obtains a termination of a mortgage borrower s equitable right of redemption, either by court order or by operation of law. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, while this equitable right exists, it is a cloud on title and the lender cannot be sure that they can successfully repossess the property. Therefore, through the process of foreclosure, the lender seeks to foreclose the equitable right of redemption, other lien holders can also foreclose the owners right of redemption for other debts, such as for overdue taxes, unpaid contractors bills or overdue homeowners association dues or assessments. Commonly, the violation of the mortgage is a default in payment of a promissory note, the mortgage holder can usually initiate foreclosure at a time specified in the mortgage documents, typically some period of time after a default condition occurs. Within the United States, Canada and many countries, several types of foreclosure exist. In the U. S. two of them – namely, by sale and by power of sale – are widely used. Under this system, the lender initiates foreclosure by filing a lawsuit against the borrower, as with all other legal actions, all parties must be notified of the foreclosure, but notification requirements vary significantly from state to state. A judicial decision is announced after the exchange of pleadings at a hearing in a state or local court, in some rather rare instances, foreclosures are filed in federal courts. In some states, like California and Texas, nearly all so-called mortgages are actually deeds of trust and this process involves the sale of the property by the mortgage holder without court supervision. This process is much faster and cheaper than foreclosure by judicial sale. As in judicial sale, the holder and other lien holders are respectively first. Other types of foreclosure are considered minor because of their limited availability, should the mortgagor fail to do so, the mortgage holder gains the title to the property with no obligation to sell it. This type of foreclosure is available only when the value of the property is less than the debt. Historically, strict foreclosure was the method of foreclosure. Acceleration is a clause that is found in Sections 16,17. Not all accelerations are the same for each mortgage, as it depends on the terms, when a term in the mortgage has been broken, the acceleration clause goes into effect. It can declare the entire debt to the Lender if the Borrower were to transfer the title at a future date to a purchaser
Foreclosure
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House in
Salinas, California under foreclosure, following the popping of the
U.S. real estate bubble.
Foreclosure
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Notices accumulate on the door and window of a foreclosed, unoccupied house
6.
Colonial Village (Arlington, Virginia)
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Colonial Village is a historic garden apartment complex located at Arlington County, Virginia. It contains 226 contributing buildings built in four stages between 1935 and 1940, the buildings hold approximately 1,055 apartments. The brick Colonial Revival-style buildings are situated around courtyards with clusters of five, Colonial Village was the first Federal Housing Administration-insured, large-scale, rental housing project erected in the United States. The complex has been converted to condominiums split into three phases and two apartment complexes, Colonial Village Apartments and Colonial Village West and it was listed on the National Register of Historic Places in 1980
Colonial Village (Arlington, Virginia)
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Colonial Village
7.
Arlington, Virginia
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Arlington County is a county in the Commonwealth of Virginia. It is coterminous with the U. S. Census Bureau-census-designated place of Arlington, as a result, the county is often referred to in the region simply as Arlington or Arlington, Virginia. In 2015, the population was estimated at 229,164. The land that became Arlington was originally donated by Virginia to the United States government to form part of the new federal district of Columbia. In 1846, Congress returned the land southwest of the Potomac River donated by Virginia due to issues involving Congressional representation, the General Assembly of Virginia changed the countys name to Arlington in 1920 to avoid confusion with the adjacent City of Alexandria. The county is situated in Northern Virginia on the bank of the Potomac River directly across from Washington. Arlington is also bordered by Fairfax County and City of Falls Church to the northwest, west and southwest, as of the 2010 census, the population was 207,627. Due to the proximity to downtown Washington, D. C. It is also home to Ronald Reagan Washington National Airport, the many federal agencies, government contractors, and service industries contribute to Arlingtons stable economy. It is the county in the United States by median family income. According to a 2016 study by Bankrate. com, Arlington is the best place to retire, the area that now constitutes Arlington County was originally part of Fairfax County in the Colony of Virginia. Land grants from the British monarch were awarded to prominent Englishmen in exchange for political favors, one of the grantees was Thomas Fairfax, 6th Lord Fairfax of Cameron, who lends his name to both Fairfax County and the City of Fairfax. George Washington Parke Custis, grandson of First Lady Martha Washington, the estate was eventually passed down to Mary Anna Custis Lee, wife of General Robert E. Lee. The property later became Arlington National Cemetery during the American Civil War, the area that now contains Arlington County was ceded to the new United States federal government by the Commonwealth of Virginia. With the passage of the Residence Act in 1790, Congress approved a new permanent capital to be located on the Potomac River, the Residence Act originally only allowed the President to select a location within Maryland as far east as what is now the Anacostia River. However, President Washington shifted the federal territorys borders to the southeast in order to include the city of Alexandria at the Districts southern tip. In 1791, Congress amended the Residence Act to approve the new site, however, this amendment to the Residence Act specifically prohibited the erection of the public buildings otherwise than on the Maryland side of the River Potomac. As permitted by the U. S. Constitution, the shape of the federal district was a square, measuring 10 miles on each side
Arlington, Virginia
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The skylines of Arlington's
Courthouse and
Rosslyn neighborhoods, with the
Georgetown and
Downtown neighborhoods of
Washington, D.C. immediately past them. The county accounts for most of Virginia's border with the District.
Arlington, Virginia
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1878 map of Alexandria County, now Arlington County
Arlington, Virginia
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Arlington National Cemetery sits on land confiscated from Confederate General
Robert E. Lee.
Arlington, Virginia
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The façade of
Arlington House appears on Arlington's seal, flag, and logo.
8.
Kensington Gardens Apartment Complex
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Kensington Gardens Apartment Complex is a historic apartment complex located at Buffalo in Erie County, New York. The 59 contributing buildings are grouped around grassed courts, there are 10 court areas created on the site and three building types within courts. It is an example of a World War II-era worker housing community built with financing by the Federal Housing Administration and it was listed on the National Register of Historic Places in 2010
Kensington Gardens Apartment Complex
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Kensington Gardens Apartment Complex
9.
Buffalo, New York
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Buffalo is a city in western New York state and the county seat of Erie County, on the eastern shores of Lake Erie at the head of the Niagara River. As of 2014, Buffalo is New York states 2nd-most populous city after New York City, the metropolitan area has a population of 1.13 million. After an economic downturn in the half of the 20th century, Buffalos economy has transitioned to sectors that include financial services, technology, biomedical engineering. Residents of Buffalo are called Buffalonians, the citys nicknames include The Queen City, The Nickel City and The City of Good Neighbors. The city of Buffalo received its name from a creek called Buffalo Creek. British military engineer Captain John Montresor made reference to Buffalo Creek in his journal of 1764, there are several theories regarding how Buffalo Creek received its name. In 1804, as principal agent opening the area for the Holland Land Company, Joseph Ellicott, designed a radial street and grid system that branches out from downtown like bicycle spokes similar to the street system he used in the nations capital. Although Ellicott named the settlement New Amsterdam, the name did not catch on, during the War of 1812, on December 30,1813, Buffalo was burned by British forces. The George Coit House 1818 and Samuel Schenck House 1823 are currently the oldest houses within the limits of the City of Buffalo, on October 26,1825, the Erie Canal was completed with Buffalo a port-of-call for settlers heading westward. At the time, the population was about 2,400, the Erie Canal brought about a surge in population and commerce, which led Buffalo to incorporate as a city in 1832. In 1845, construction began on the Macedonia Baptist Church, an important meeting place for the abolitionist movement, Buffalo was a terminus point of the Underground Railroad with many fugitive slaves crossing the Niagara River to Fort Erie, Ontario in search of freedom. During the 1840s, Buffalos port continued to develop, both passenger and commercial traffic expanded with some 93,000 passengers heading west from the port of Buffalo. Grain and commercial goods shipments led to repeated expansion of the harbor, in 1843, the worlds first steam-powered grain elevator was constructed by local merchant Joseph Dart and engineer Robert Dunbar. Darts Elevator enabled faster unloading of lake freighters along with the transshipment of grain in bulk from barges, canal boats, by 1850, the citys population was 81,000. At the dawn of the 20th century, local mills were among the first to benefit from hydroelectric power generated by the Niagara River, the city got the nickname City of Light at this time due to the widespread electric lighting. It was also part of the revolution, hosting the brass era car builders Pierce Arrow. President William McKinley was shot and mortally wounded by an anarchist at the Pan-American Exposition in Buffalo on September 6,1901, McKinley died in the city eight days later and Theodore Roosevelt was sworn in at the Wilcox Mansion as the 26th President of the United States. The Great Depression of 1929–39 saw severe unemployment, especially working class men
Buffalo, New York
Buffalo, New York
Buffalo, New York
Buffalo, New York
10.
Subprime mortgage crisis
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The United States subprime mortgage crisis was a nationwide banking emergency that contributed to the U. S. recession of December 2007 – June 2009. It was triggered by a decline in home prices after the collapse of a housing bubble, leading to mortgage delinquencies and foreclosures. Declines in residential investment preceded the recession and were followed by reductions in household spending, spending reductions were more significant in areas with a combination of high household debt and larger housing price declines. A proximate cause was the rise in subprime lending. S, a high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages. These two changes were part of a trend of lowered lending standards and higher-risk mortgage products. When U. S. home prices declined steeply after peaking in mid-2006, as adjustable-rate mortgages began to reset at higher interest rates, mortgage delinquencies soared. Securities backed with mortgages, including mortgages, widely held by financial firms globally. Concerns about the soundness of U. S. credit and financial markets led to tightening credit around the world and slowing growth in the U. S. The crisis had severe, long-lasting consequences for the U. S. the U. S. entered a deep recession, with nearly 9 million jobs lost during 2008 and 2009, roughly 6% of the workforce. One estimate of lost output from the crisis comes to at least 40% of 2007 gross domestic product, U. S. housing prices fell nearly 30% on average and the U. S. stock market fell approximately 50% by early 2009. As of early 2013, the U. S. stock market had recovered to its pre-crisis peak, Economic growth remained below pre-crisis levels. Europe also continued to struggle with its own crisis, with elevated unemployment. The immediate cause or trigger of the crisis was the bursting of the United States housing bubble which peaked in approximately 2005–2006. However, once interest rates began to rise and housing prices started to drop moderately in 2006–2007 in many parts of the U. S. borrowers were unable to refinance. Defaults and foreclosure activity increased dramatically as easy initial terms expired, home prices fell, as housing prices fell, global investor demand for mortgage-related securities evaporated. This became apparent by July 2007, when investment bank Bear Stearns announced that two of its hedge funds had imploded and these funds had invested in securities that derived their value from mortgages. When the value of these securities dropped, investors demanded that these hedge funds provide additional collateral and this created a cascade of selling in these securities, which lowered their value further. Economist Mark Zandi wrote that this 2007 event was arguably the proximate catalyst for the market disruption that followed
Subprime mortgage crisis
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A mortgage brokerage in the US advertising subprime mortgages in July 2008.
Subprime mortgage crisis
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Subprime mortgage lending jumped dramatically during the 2004–2006 period preceding the crisis (source: Financial Crisis Inquiry Commission Report, p.70 Figure 5.2).
Subprime mortgage crisis
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Franklin Raines earned $90 million in salary and bonuses while he was head of Fannie Mae.
Subprime mortgage crisis
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Relationship between fiscal tightening (austerity) in
Eurozone countries with their GDP growth rate, 2008–2012
11.
Fannie Mae
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The Federal National Mortgage Association, commonly known as Fannie Mae, is a United States government-sponsored enterprise and, since 1968, a publicly traded company. Its brother organization is the Federal Home Loan Mortgage Corporation, better known as Freddie Mac, the Great Depression wrought havoc on the U. S. housing market. By 1933, an estimated 20 to 25% of the outstanding mortgage debt was in default. Fannie Mae was established in 1938 by amendments to the National Housing Act as part of Franklin Delano Roosevelts New Deal, for the first thirty years following its inception, Fannie Mae held a monopoly over the secondary mortgage market. Fannie Mae was acquired by the Housing and Home Finance Agency from the Federal Loan Agency as a constituent unit in 1950. In the 1968 change, arising from the Housing and Urban Development Act of 1968, Fannie Maes predecessor was split into the current Fannie Mae, Ginnie Mae, which remained a government organization, supports FHA-insured mortgages as well as Veterans Administration and Farmers Home Administration insured mortgages. As such, Ginnie Mae is the only home-loan agency explicitly backed by the full faith, in 1970, the federal government authorized Fannie Mae to purchase conventional mortgages, the same year it went public on New York and Pacific Exchanges, i. e. In 1981, Fannie Mae issued its first mortgage passthrough and called it a mortgage-backed security, the Fannie Mae laws did not require the Banks to hand out subprime loans in any way. In 1992, President George H. W. Bush signed the Housing, the initial annual goal for low-income and moderate-income mortgage purchases for each GSE was 30% of the total number of dwelling units financed by mortgage purchases and increased to 55% by 2007. Additionally, Community Reinvestment Act regulators, under the direction of HUD secretary Andrew Cuomo, in essence, banks were rewarded for by-passing loan standards, and instead, approving loans to those who were at high risk of defaulting. But the government-subsidized corporation may run into trouble in a downturn, prompting a government rescue similar to that of the savings. In 2004, these rules were dropped and high-risk loans were again counted toward affordable housing goals and we sought to bring the standards we apply to the prime space to the subprime market with our industry partners primarily to expand our services to underserved families. Unfortunately, Fannie Mae-quality, safe loans in the market did not become the standard. Borrowers were offered a range of loans that layered teaser rates, interest-only, negative amortization and payment options, in early 2005 we began sounding our concerns about this layered-risk lending. Those products are for more sophisticated buyers, does it make sense for borrowers to take on risk they may not be aware of. Are we setting them up for failure, as a result, we gave up significant market share to our competitors. Alex Berenson of The New York Times reported in 2003 that Fannie Maes risk is much larger than is commonly held. Nassim Taleb wrote in The Black Swan, The government-sponsored institution Fannie Mae, but not to worry, their large staff of scientists deem these events unlikely
Fannie Mae
–
Fannie Mae headquarters at 3900
Wisconsin Avenue, NW in Washington, D.C
Fannie Mae
–
A view, from the southwest, of the Federal National Mortgage Association's (Fannie Mae's) Reston, Virginia facility.
Fannie Mae
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Franklin Raines earned $90 million in salary and bonuses while he was head of Fannie Mae.
12.
Freddie Mac
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The Federal Home Loan Mortgage Corporation, known as Freddie Mac, is a public government-sponsored enterprise, headquartered in the Tysons Corner CDP in Fairfax County, Virginia. The FHLMC was created in 1970 to expand the market for mortgages in the US. Along with the Federal National Mortgage Association, Freddie Mac buys mortgages on the market, pools them. This secondary mortgage market increases the supply of available for mortgage lending. The name, Freddie Mac, is a variant of the initialism of the full name that had been adopted officially for ease of identification. On September 7,2008, Federal Housing Finance Agency director James B, lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA. The action has been described as one of the most sweeping government interventions in private financial markets in decades, Moodys changed the credit rating on that day to Baa3, the lowest investment grade credit rating. Freddies senior debt credit rating remains Aaa/AAA from each of the ratings agencies Moodys, S&P. Home loan interest rates may go down as a result and owners of Freddie Mac debt, in 2008, the yield on U. S Treasury securities rose in anticipation of increased U. S. federal debt. For a comprehensive list of articles discussing Freddie Mac, see Bibliography of Fannie Mae, in 1968, Fannie Mae split into a private corporation and a publicly financed institution. Initially, Freddie Mac was owned by the Federal Home Loan Bank System, in 1989, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 revised and standardized the regulation of Fannie Mae and Freddie Mac. It also severed Freddie Macs ties to the Federal Home Loan Bank System, the Federal Home Loan Bank Board was abolished and replaced by different and separate entities. An 18-member board of directors for Freddie Mac was formed, and subjected to oversight by the U. S. Department of Housing and Urban Development. Separately, The Federal Housing Finance Board was created as an independent agency to take the place of the FHLBB, in 1995, Freddie Mac began receiving affordable housing credit for buying subprime securities, and by 2004, HUD suggested the company was lagging behind and should do more. Freddie Mac was put under a conservatorship of the U. S. Federal government on Sunday, Freddie Macs primary method of making money is by charging a guarantee fee on loans that it has purchased and securitized into mortgage-backed security bonds. Investors, or purchasers of Freddie Mac MBS, are willing to let Freddie Mac keep this fee in exchange for assuming the credit risk. That is, Freddie Macs guarantee that the principal and interest on the loan will be paid back regardless of whether the borrower actually repays. Because of Freddie Macs financial guarantee, these MBS are particularly attractive to investors and, like other Agency MBS, are eligible to be traded in the to-be-announced, the GSEs are allowed to buy only conforming loans, which limits secondary market demand for non-conforming loans
Freddie Mac
–
Federal Home Loan Mortgage Corporation (Freddie Mac)
13.
Credit crunch
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A credit crunch is a sudden reduction in the general availability of loans or a sudden tightening of the conditions required to obtain a loan from banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates, many times, a credit crunch is accompanied by a flight to quality by lenders and investors, as they seek less risky investments. There are a number of reasons why banks might suddenly stop or slow lending activity, easy credit conditions are characterized by low interest rates for borrowers and relaxed lending practices by bankers, making it easy to get inexpensive loans. A credit crunch is the opposite, in which interest rates rise, in a credit bubble, lending standards become less stringent. Easy credit drives up prices within a class of assets, usually real estate or equities and these increased asset values then become the collateral for further borrowing. During the upward phase in the cycle, asset prices may experience bouts of frenzied competitive. This can then cause a price bubble to develop. As this upswing in new debt creation also increases the supply and stimulates economic activity. Economist Hyman Minsky described the types of borrowing and lending that contribute to a bubble, the hedge borrower can make debt payments from current cash flows from investments. This borrower is not taking significant risk, often it is only in retrospect that participants in an economic bubble realize that the point of collapse was obvious. In this respect, economic bubbles can have dynamic characteristics not unlike Ponzi schemes or Pyramid schemes, several psychological factors contribute to bubbles and related busts. Social herding refers to following the behavior of others, assuming they understand what is happening, people may assume that unusually favorable trends will continue indefinitely. Incentives may also encourage risky behavior, particularly where the consequences if a bet goes sour are shared collectively. The tendency of government to bail out financial institutions that get into trouble and these and other cognitive biases that impair judgment can contribute to credit bubbles and crunches. The crunch is generally caused by a reduction in the prices of previously overinflated assets. This can result in widespread foreclosure or bankruptcy for those who came in late to the market, in this case, accessing additional credit lines and trading through the crisis can allow the business to navigate its way through the problem and ensure its continued solvency and viability. It is often difficult to know, in the midst of a crisis, in the case of a liquidity crisis on the other hand, it may be preferable to attempt to access additional lines of credit, as opportunities for growth may exist once the liquidity crisis is overcome. Financial institutions facing losses may then reduce the availability of credit, in some cases lenders may be unable to lend further, even if they wish, as a result of earlier losses
Credit crunch
–
U.S. house price trend (1998–2008) as measured by the
Case-Shiller index. Housing prices nearly doubled, rising from 100 to nearly 200 on the index, between 2000 and 2006.
Credit crunch
–
U.S. household debt relative to disposable income and GDP.
14.
Forbes
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Forbes is an American business magazine. Published bi-weekly, it features articles on finance, industry, investing. Forbes also reports on related subjects such as technology, communications, science, politics and its headquarters is located in Jersey City, New Jersey. Primary competitors in the business magazine category include Fortune and Bloomberg Businessweek. The magazine is known for its lists and rankings, including its lists of the richest Americans. Another well-known list by the magazine is The Worlds Billionaires list, the motto of Forbes magazine is The Capitalist Tool. Its chairman and editor-in-chief is Steve Forbes, and its CEO is Mike Perlis, Forbes, a financial columnist for the Hearst papers, and his partner Walter Drey, the general manager of the Magazine of Wall Street, founded Forbes magazine on September 15,1917. Forbes provided the money and the name and Drey provided the publishing expertise, the original name of the magazine was Forbes, Devoted to Doers and Doings. Drey became vice-president of the B. C. Forbes Publishing Company, while B. C. Forbes became editor-in-chief, B. C. Forbes was assisted in his later years by his two eldest sons, Bruce Charles Forbes and Malcolm Stevenson Forbes. Bruce Forbes took over on his fathers death, and his strengths lay in streamlining operations, during his tenure, 1954–1964, the magazines circulation nearly doubled. On Malcolms death, his eldest son Malcolm Stevenson Steve Forbes Jr. became President and Chief Executive of Forbes, between 1961 and 1999 the magazine was edited by James Michaels. In 1993, under Michaels, Forbes was a finalist for the National Magazine Award. com, a 2009 New York Times report said,40 percent of the enterprise was sold. For a reported $300 million, setting the value of the enterprise at $750 million, according to Mark M. Edmiston of AdMedia Partners, Its probably not worth half of that now. The companys headquarters moved to the Newport section of downtown Jersey City. In November 2013, Forbes Media, which publishes Forbes magazine, was put up for sale and this was encouraged by Elevation Partners, of whom were minority shareholders. Sales documents prepared by Deutsche Bank revealed that the publishers 2012 EBITDA was $15 million, Forbes reportedly sought a price of $400 million. In July 2014, Forbes sold a majority of itself to Integrated Whale Media Investments, Steve Forbes and his magazines writers offer investment advice on the weekly Fox TV show Forbes on Fox and on Forbes On Radio. Other company groups include Forbes Conference Group, Forbes Investment Advisory Group, from the 2009 Times report, Steve Forbes recently returned from opening up a Forbes magazine in India, bringing the number of foreign editions to 10
Forbes
–
Cover for December 20, 2010, featuring
Julian Assange
Forbes
–
Forbes's former headquarters on
5th Avenue in Manhattan (now owned by New York University)
Forbes
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Forbes Building on
Fifth Avenue in New York City (now owned by
New York University)
15.
FHA loan
–
An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA-approved lender. FHA insured loans are a type of assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. There is also a mortgage insurance premium which varies based on the amortization term. The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, some FHA programs were subsidized by the government, but the goal was to make it self-supporting, based on insurance premiums paid by borrowers. Over time, private insurance companies came into play. The program has since this time modified to accommodate the heightened recession. The FHA makes no loans, nor does it plan or build houses, as in the Veterans Administrations VA loan program, the applicant for the loan must make arrangements with a lending institution. This financial organization then may ask if the borrower wants FHA insurance on the loan or may insist that the borrower apply for it and these loans almost entirely excluded blacks and other minorities from access and helped to build the white middle-class family. Until the latter half of the 1960s, the Federal Housing Administration served mainly as an agency for loans made by private lenders. However, in recent years this role has expanded as the agency became the administrator of interest rate subsidy. Important subsidy programs such as the Civil Rights Act of 1968 were established by the United States Department of Housing, in 1974 the Housing and Community Development Act was passed. Its provisions significantly altered federal involvement in a range of housing. The new law made a variety of changes in FHA activities, although it did not involve a complete rewriting and consolidation of the National Housing Act. In 1980 the Housing and Community Development Act was passed, it permitted negotiated interest rates on certain FHA loans, on August 31,2007, the FHA added a new refinancing program called FHA-Secure to help borrowers hurt by the 2007 subprime mortgage financial crisis. On March 6,2008, the FHA Forward program was initiated and this is the part of the stimulus package that President George W. Bush had in place to raise the loan limits for FHA. On April 1,2012, the FHA enacted a new rule that requires their customers to settle with creditors in order to get a mortgage loan. This controversial change was rescinded and postponed until July 2012, but was cancelled altogether pending clarification. By November 2012, the FHA was essentially bankrupt, the FHA does not make loans
FHA loan
–
World War II poster
16.
Loan-to-value ratio
–
The loan-to-value ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property. For instance, if someone borrows $130,000 to purchase a house worth $150,000, the remaining 13% represent the lenders haircut, adding up to 100% and being covered from the borrowers equity. The higher the LTV ratio, the riskier the loan is for a lender, the valuation of a property is typically determined by an appraiser, but a better measure is an arms-length transaction between a willing buyer and a willing seller. Typically, banks will utilize the lesser of the appraised value, Loan to value is one of the key risk factors that lenders assess when qualifying borrowers for a mortgage. The risk of default is always at the forefront of lending decisions, therefore, as the LTV ratio of a loan increases, the qualification guidelines for certain mortgage programs become much more strict. Lenders can require borrowers of high LTV loans to buy insurance to protect the lender from the buyer default. Higher LTV ratios are primarily reserved for borrowers with higher credit scores, full financing, or 100% LTV, is reserved for only the most credit-worthy borrowers. The loans with LTV ratios higher than 100% are called underwater mortgages, Combined Loan To Value Ratio is the proportion of loans in relation to its value. The term Combined Loan To Value adds additional specificity to the basic Loan to Value which simply indicates the ratio between one primary loan and the property value. When Combined is added, it indicates that additional loans on the property have been considered in the calculation of the percentage ratio, the aggregate principal balance of all mortgages on a property divided by its appraised value or Purchase Price, whichever is less. Distinguishing CLTV from LTV serves to identify loan scenarios that involve more than one mortgage, for example, a property valued at $100,000 with a single mortgage of $50,000 has an LTV of 50%. A similar property with a value of $100,000 with a first mortgage of $50,000, Combined Loan to Value is an amount in addition to the Loan to Value, which simply represents the first position mortgage or loan as a percentage of the propertys value. In the United States, conforming loans that meet Fannie Mae, conforming loans above 80% are allowed but typically require private mortgage insurance. Other over-80% LTV loan options exist as well, the Federal Housing Administration insures purchase loans to 96. 5%, TD Bank, Toronto-Dominion Banks U. S. Properties with more than one lien, such as stand-alone seconds, the LTV for the stand-alone seconds and Home Equity Line of Credit would be the loan balance as a percentage of the appraised value. However, in order to measure the riskiness of the borrower, in Australia, the term Loan to Value Ratio is used. An LVR of 80% or below is considered to be low risk for standard conforming loans, higher LVRs of up to 95% are available if the loan is mortgage insured
Loan-to-value ratio
17.
FHA insured loan
–
An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA-approved lender. FHA insured loans are a type of assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. There is also a mortgage insurance premium which varies based on the amortization term. The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, some FHA programs were subsidized by the government, but the goal was to make it self-supporting, based on insurance premiums paid by borrowers. Over time, private insurance companies came into play. The program has since this time modified to accommodate the heightened recession. The FHA makes no loans, nor does it plan or build houses, as in the Veterans Administrations VA loan program, the applicant for the loan must make arrangements with a lending institution. This financial organization then may ask if the borrower wants FHA insurance on the loan or may insist that the borrower apply for it and these loans almost entirely excluded blacks and other minorities from access and helped to build the white middle-class family. Until the latter half of the 1960s, the Federal Housing Administration served mainly as an agency for loans made by private lenders. However, in recent years this role has expanded as the agency became the administrator of interest rate subsidy. Important subsidy programs such as the Civil Rights Act of 1968 were established by the United States Department of Housing, in 1974 the Housing and Community Development Act was passed. Its provisions significantly altered federal involvement in a range of housing. The new law made a variety of changes in FHA activities, although it did not involve a complete rewriting and consolidation of the National Housing Act. In 1980 the Housing and Community Development Act was passed, it permitted negotiated interest rates on certain FHA loans, on August 31,2007, the FHA added a new refinancing program called FHA-Secure to help borrowers hurt by the 2007 subprime mortgage financial crisis. On March 6,2008, the FHA Forward program was initiated and this is the part of the stimulus package that President George W. Bush had in place to raise the loan limits for FHA. On April 1,2012, the FHA enacted a new rule that requires their customers to settle with creditors in order to get a mortgage loan. This controversial change was rescinded and postponed until July 2012, but was cancelled altogether pending clarification. By November 2012, the FHA was essentially bankrupt, the FHA does not make loans
FHA insured loan
–
World War II poster
18.
World War II
–
World War II, also known as the Second World War, was a global war that lasted from 1939 to 1945, although related conflicts began earlier. It involved the vast majority of the worlds countries—including all of the great powers—eventually forming two opposing alliances, the Allies and the Axis. It was the most widespread war in history, and directly involved more than 100 million people from over 30 countries. Marked by mass deaths of civilians, including the Holocaust and the bombing of industrial and population centres. These made World War II the deadliest conflict in human history, from late 1939 to early 1941, in a series of campaigns and treaties, Germany conquered or controlled much of continental Europe, and formed the Axis alliance with Italy and Japan. Under the Molotov–Ribbentrop Pact of August 1939, Germany and the Soviet Union partitioned and annexed territories of their European neighbours, Poland, Finland, Romania and the Baltic states. In December 1941, Japan attacked the United States and European colonies in the Pacific Ocean, and quickly conquered much of the Western Pacific. The Axis advance halted in 1942 when Japan lost the critical Battle of Midway, near Hawaii, in 1944, the Western Allies invaded German-occupied France, while the Soviet Union regained all of its territorial losses and invaded Germany and its allies. During 1944 and 1945 the Japanese suffered major reverses in mainland Asia in South Central China and Burma, while the Allies crippled the Japanese Navy, thus ended the war in Asia, cementing the total victory of the Allies. World War II altered the political alignment and social structure of the world, the United Nations was established to foster international co-operation and prevent future conflicts. The victorious great powers—the United States, the Soviet Union, China, the United Kingdom, the Soviet Union and the United States emerged as rival superpowers, setting the stage for the Cold War, which lasted for the next 46 years. Meanwhile, the influence of European great powers waned, while the decolonisation of Asia, most countries whose industries had been damaged moved towards economic recovery. Political integration, especially in Europe, emerged as an effort to end pre-war enmities, the start of the war in Europe is generally held to be 1 September 1939, beginning with the German invasion of Poland, Britain and France declared war on Germany two days later. The dates for the beginning of war in the Pacific include the start of the Second Sino-Japanese War on 7 July 1937, or even the Japanese invasion of Manchuria on 19 September 1931. Others follow the British historian A. J. P. Taylor, who held that the Sino-Japanese War and war in Europe and its colonies occurred simultaneously and this article uses the conventional dating. Other starting dates sometimes used for World War II include the Italian invasion of Abyssinia on 3 October 1935. The British historian Antony Beevor views the beginning of World War II as the Battles of Khalkhin Gol fought between Japan and the forces of Mongolia and the Soviet Union from May to September 1939, the exact date of the wars end is also not universally agreed upon. It was generally accepted at the time that the war ended with the armistice of 14 August 1945, rather than the formal surrender of Japan
World War II
–
Clockwise from top left: Chinese forces in the
Battle of Wanjialing, Australian
25-pounder guns during the
First Battle of El Alamein, German
Stuka dive bombers on the
Eastern Front in December 1943, a U.S. naval force in the
Lingayen Gulf,
Wilhelm Keitel signing the
German Instrument of Surrender, Soviet troops in the
Battle of Stalingrad
World War II
–
The
League of Nations assembly, held in
Geneva,
Switzerland, 1930
World War II
–
Adolf Hitler at a German
National Socialist political rally in
Weimar, October 1930
World War II
–
Italian soldiers recruited in 1935, on their way to fight the
Second Italo-Abyssinian War
19.
Inflation
–
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time resulting in a loss of value of currency. When the price rises, each unit of currency buys fewer goods. Consequently, inflation reflects a reduction in the power per unit of money – a loss of real value in the medium of exchange. A chief measure of inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index. The opposite of inflation is deflation, Inflation affects economies in various positive and negative ways. Economists generally believe that high rates of inflation and hyperinflation are caused by a growth of the money supply. However, money supply growth does not necessarily cause inflation, some economists maintain that under the conditions of a liquidity trap, large monetary injections are like pushing on a string. Views on which factors determine low to moderate rates of inflation are more varied, low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth. Today, most economists favor a low and steady rate of inflation, the task of keeping the rate of inflation low and stable is usually given to monetary authorities. Rapid increases in quantity of the money or in the money supply have occurred in many different societies throughout history. By diluting the gold with other metals, the government could issue more coins without also needing to increase the amount of used to make them. When the cost of each coin is lowered in this way and this practice would increase the money supply but at the same time the relative value of each coin would be lowered. As the relative value of the coins becomes lower, consumers would need to give more coins in exchange for the same goods and these goods and services would experience a price increase as the value of each coin is reduced. Song Dynasty China introduced the practice of printing paper money in order to create fiat currency, during the Mongol Yuan Dynasty, the government spent a great deal of money fighting costly wars, and reacted by printing more money, leading to inflation. Fearing the inflation that plagued the Yuan dynasty, the Ming Dynasty initially rejected the use of paper money, historically, large infusions of gold or silver into an economy also led to inflation. This was largely caused by the influx of gold and silver from the New World into Habsburg Spain. The silver spread throughout a previously cash-starved Europe and caused widespread inflation, demographic factors also contributed to upward pressure on prices, with European population growth after depopulation caused by the Black Death pandemic
Inflation
–
Two 20 kr gold coins from the
Scandinavian Monetary Union, a historical example of an international gold standard.
Inflation
–
Annual inflation rates in the United States from 1666 to 2004.
20.
African American
–
African Americans are an ethnic group of Americans with total or partial ancestry from any of the Black racial groups of Africa. The term may also be used to only those individuals who are descended from enslaved Africans. As a compound adjective the term is usually hyphenated as African-American, Black and African Americans constitute the third largest racial and ethnic group in the United States. Most African Americans are of West and Central African descent and are descendants of enslaved peoples within the boundaries of the present United States. On average, African Americans are of 73. 2–80. 9% West African, 18–24% European, according to US Census Bureau data, African immigrants generally do not self-identify as African American. The overwhelming majority of African immigrants identify instead with their own respective ethnicities, immigrants from some Caribbean, Central American and South American nations and their descendants may or may not also self-identify with the term. After the founding of the United States, black people continued to be enslaved, believed to be inferior to white people, they were treated as second-class citizens. The Naturalization Act of 1790 limited U. S. citizenship to whites only, in 2008, Barack Obama became the first African American to be elected President of the United States. The first African slaves arrived via Santo Domingo to the San Miguel de Gualdape colony, the ill-fated colony was almost immediately disrupted by a fight over leadership, during which the slaves revolted and fled the colony to seek refuge among local Native Americans. De Ayllón and many of the colonists died shortly afterwards of an epidemic, the settlers and the slaves who had not escaped returned to Haiti, whence they had come. The first recorded Africans in British North America were 20 and odd negroes who came to Jamestown, as English settlers died from harsh conditions, more and more Africans were brought to work as laborers. Typically, young men or women would sign a contract of indenture in exchange for transportation to the New World, the landowner received 50 acres of land from the state for each servant purchased from a ships captain. An indentured servant would work for years without wages. The status of indentured servants in early Virginia and Maryland was similar to slavery, servants could be bought, sold, or leased and they could be physically beaten for disobedience or running away. Africans could legally raise crops and cattle to purchase their freedom and they raised families, married other Africans and sometimes intermarried with Native Americans or English settlers. By the 1640s and 1650s, several African families owned farms around Jamestown and some became wealthy by colonial standards and purchased indentured servants of their own. In 1640, the Virginia General Court recorded the earliest documentation of slavery when they sentenced John Punch. One of Dutch African arrivals, Anthony Johnson, would own one of the first black slaves, John Casor
African American
–
An artist's conception of
Crispus Attucks (1723–1770), the first "
martyr " of the
American Revolution. He was of
Native American and African American descent.
African American
–
Jesse Owens shook racial stereotypes both with Nazis and segregationists in the USA at the 1936 Berlin Olympics.
African American
–
An African-American boy outside of
Cincinnati,
Ohio in the 1940s.
African American
–
March on Washington, August 28, 1963, shows civil rights leaders and union leaders.
21.
Hispanic and Latino Americans
–
Hispanic Americans and Latino Americans, are Americans who are descendants of the peoples of Spain, Portugal, or the Spanish- or Portuguese-speaking countries of Latin America. More generally, it includes all persons in the United States who self-identify as Hispanic or Latino, other U. S. government agencies have slightly different definitions of the term, including Brazilians and other Portuguese-speaking groups. The Census Bureau uses the terms Hispanic and Latino interchangeably, origin can be viewed as the ancestry, nationality group, lineage, or country of birth of the person or the persons parents or ancestors before their arrival in the United States. People who identify as Spanish, Hispanic, or Latino may be of any race, as the only specifically designated category of ethnicity in the United States, Hispanics form a pan-ethnicity incorporating a diversity of inter-related cultural and linguistic heritages. Most Hispanic Americans are of Mexican, Puerto Rican, Cuban, Salvadoran, Dominican, Guatemalan, the predominant origin of regional Hispanic populations varies widely in different locations across the country. Hispanic Americans are the second fastest-growing ethnic group in the United States after Asian Americans, hispanic/Latinos overall are the second-largest ethnic group in the United States, after non-Hispanic Whites. Hispanics have lived within what is now the United States continuously since the founding of St. Augustine by the Spanish in 1565, after Native Americans, Hispanics are the oldest ethnic group to inhabit much of what is today the United States. Spain colonized large areas of what is today the American Southwest and West Coast, the terms Hispanic and Latino refer to an ethnicity, people of this group may be of any race. Hispanic people may share some commonalities in their language, culture, history, according to the Smithsonian Institution, the term Latino includes peoples with Portuguese roots, such as Brazilians, as well as those of Spanish-language origin. In the United States, many Hispanics and Latinos are of both European and Native American ancestry, others are wholly or predominately of European ancestry, or wholly or predominantly of Amerindian ancestry. Many Hispanics and Latinos from the Caribbean, as well as regions of Latin America where African slavery was widespread. The difference between the terms Hispanic and Latino is confusing to some, the U. S. Census Bureau equates the two terms and defines them as referring to anyone from Spain and the Spanish-speaking countries of the Americas. The term Latino has developed a number of definitions, one definition of Latino is a Latin male in the United States. This is the oldest and the definition used in the United States. This definition encompasses Spanish speakers from both Europe and the Americas, under this definition, immigrants from Spain and immigrants from Latin America are both Latino. This definition is consistent with the 21st-century usage by the U. S. Census Bureau and OMB, a later definition of Latino is as a condensed form of the term Latino-Americano, the Spanish word for Latin-American, or someone who comes from Latin America. Under this definition a Mexican American or Puerto Rican, for example, is both a Hispanic and a Latino, a Brazilian American is also a Latino by this definition, which includes those of Portuguese-speaking origin from Latin America. An immigrant from Spain, however, would be classified as Hispanic, while the U. S. Census Bureaus definition of Hispanic is limited to Spain and Spanish-speaking Latin America, other government agencies have slightly different definitions of the term
Hispanic and Latino Americans
–
Pedro Menéndez de Avilés, 16th century Spanish admiral who founded the first European settlement in North America (
Saint Augustine, Florida).
Hispanic and Latino Americans
–
Percent of Hispanic and Latino population by state in 2012.
Hispanic and Latino Americans
–
Castillo de San Marcos in
Saint Augustine, Florida. Built in 1672 by the Spanish, it is the oldest masonry fort in the United States.
Hispanic and Latino Americans
–
Miami 's
Brickell neighborhood is known for its large concentration of wealthy Hispanics, largely of
South American descent.
22.
Redlining
–
During the heyday of redlining, the areas most frequently discriminated against were black inner city neighborhoods. In the academic literature, redlining falls under the category of credit rationing. Reverse redlining occurs when a lender or insurer targets nonwhite consumers, not to deny them loans or insurance, racial segregation and discrimination against minorities and minority communities pre-existed this policy. The assumptions in redlining resulted in an increase in residential racial segregation. Urban planning historians theorize that the maps were used by private, on the maps, the newest areas—those considered desirable for lending purposes—were outlined in green and known as Type A. These were typically affluent suburbs on the outskirts of cities, Type B neighborhoods, outlined in blue, were considered Still Desirable, whereas older Type C were labeled Declining and outlined in yellow. Type D neighborhoods were outlined in red and were considered the most risky for mortgage support and these neighborhoods tended to be the older districts in the center of cities, often they were also black neighborhoods. Some redlined maps were created by private organizations, such as J. M. Private organizations created maps designed to meet the requirements of the Federal Housing Administrations underwriting manual, the lenders had to consider FHA standards if they wanted to receive FHA insurance for their loans. FHA appraisal manuals instructed banks to clear of areas with inharmonious racial groups. NPA embarked on an effort to build a coalition of urban community organizations to pass a national disclosure regulation or law to require banks to reveal their lending patterns. These actions addressed the issues of neighborhood decline. Neighborhood leaders began to learn that these issues and conditions were symptoms of a disinvestment that was the true and they changed their strategy as more data was gathered. With the help of NPA, a coalition of loosely affiliated community organizations began to form, at the Third Annual Housing Conference held in Chicago in 1974, eight hundred delegates representing 25 states and 35 cities attended. The strategy focused on the Federal Home Loan Bank Board, which oversaw S&Ls in cities all over the country, in Massachusetts, organizers allied with NPA confronted a unique situation. Over 90% of home mortgages were held by state-chartered savings banks, a Jamaica Plain neighborhood organization pushed the disinvestment issue into the statewide gubernatorial race. After Dukakis was elected, his new Banking Commissioner ordered banks to disclose mortgage-lending patterns by zip code, NPA and its affiliates achieved disclosure of lending practices with the passage of The Home Mortgage Disclosure Act of 1975. The required transparency and review of loan practices began to change lending practices, NPA began to work on reinvestment in areas that had been neglected
Redlining
–
A
HOLC 1936 security map of
Philadelphia showing redlining of lower income neighborhoods. Households and businesses in the red zones could not get mortgages or business loans.
23.
Fair housing
–
This type of discrimination can lead to housing and spatial inequality and racial segregation which, in turn, can exacerbate wealth disparities between certain groups. After the end of the Civil War and the abolition of slavery and these laws led to the discrimination of racial and ethnic minorities, especially African Americans. Fifteen state courts obeyed ordinances that enforced the denial of housing to African American and these ordinances were then made illegal in the 1917 Supreme Court case, Buchanan v. Warley. Following this decision, however, nineteen states legally supported “covenants, ” or agreements, although the covenants, too, were made illegal in 1948, they were still allowed to be present in private deeds. The act explicitly prohibits housing discrimination practices common at the time, including filtering information about a home’s availability, racial steering, blockbusting, the Fair Housing Act was passed at the urging of President Lyndon B. Johnson. Congress passed the federal Fair Housing Act, Title VIII of the Civil Rights Act of 1968, only one week after the assassination of Martin Luther King, the primary purpose of the Fair Housing Law of 1968 is to protect the buyer/renter of a dwelling from seller/landlord discrimination. Its primary prohibition makes it unlawful to refuse to sell, rent to, the goal is a unitary housing market in which a persons background does not arbitrarily restrict access. Calls for open housing were issued early in the twentieth century, the Fair Housing Act introduced meaningful federal enforcement mechanisms. It outlawed, Refusal to sell or rent a dwelling to any person because of race, color, religion, sex, discrimination based on race, color, religion or national origin in the terms, conditions or privilege of the sale or rental of a dwelling. Advertising the sale or rental of a dwelling indicating preference of discrimination based on race, color, when the Fair Housing Act was first enacted, it prohibited discrimination only on the basis of race, color, religion, sex, and national origin. In 1988, disability and familial status were added, in certain circumstances, the law allows limited exceptions for discrimination based on sex, religion, or familial status. The United States Department of Housing and Urban Development is the executive department with the statutory authority to administer. FHEO is one of the United States largest federal civil rights agencies and it has a staff of more than 600 people located in 54 offices around the United States. As of June 2014, the head of FHEO is Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez, individuals who believe they have experienced housing discrimination can file a complaint with FHEO at no charge. FHEO funds and has working agreements with many state and local governmental agencies where substantially equivalent fair housing laws are in place. Under these agreements, FHEO refers complaints to the state or locality where the incident occurred. This is known as FHEOs Fair Housing Assistance Program, there is also a network of private, non-profit fair housing advocacy organizations throughout the country. Some are funded by FHEOs Fair Housing Initiatives Program, and some operate with private donations or grants from other sources, victims of housing discrimination need not go through HUD or any other governmental agency to pursue their rights, however
Fair housing
–
Prohibits housing discrimination based on sexual orientation and gender identity
24.
New Deal
–
The New Deal was a series of programs, including, most notably, Social Security, that were enacted in the United States between 1933 and 1938, and a few that came later. They included both laws passed by Congress as well as executive orders during the first term of the Presidency of Franklin D. Roosevelt. The Republicans were split, with opposing the entire New Deal as an enemy of business and growth. By 1936 the term liberal typically was used for supporters of the New Deal, from 1934 to 1938, Roosevelt was assisted in his endeavours by a pro-spender majority in Congress. In the 1938 midterm elections, however, Roosevelt and his supporters lost control of Congress to the bipartisan conservative coalition. Many historians distinguish between a First New Deal and a Second New Deal, with the one more liberal. The First New Deal dealt with the banking crises through the Emergency Banking Act. The Securities Act of 1933 was enacted to prevent a repeated stock market crash, the controversial work of the National Recovery Administration was also part of the First New Deal. The economic downturn of 1937–38, and the split between the AFL and CIO labor unions led to major Republican gains in Congress in 1938. Conservative Republicans and Democrats in Congress joined in the informal Conservative Coalition, by 1942–43 they shut down relief programs such as the WPA and Civilian Conservation Corps and blocked major liberal proposals. Roosevelt himself turned his attention to the war effort, and won reelection in 1940 and 1944, the Supreme Court declared the National Recovery Administration and the first version of the Agricultural Adjustment Act unconstitutional, however the AAA was rewritten and then upheld. As the first Republican president elected after Franklin D. Roosevelt, Dwight D. Eisenhower left the New Deal largely intact, Johnsons Great Society used the New Deal as inspiration for a dramatic expansion of liberal programs, which Republican Richard M. Nixon generally retained. After 1974, however, the call for deregulation of the economy gained bipartisan support, the New Deal regulation of banking was suspended in the 1990s. The largest programs still in existence today are the Social Security System, the phrase New Deal was coined by an adviser to Roosevelt, Stuart Chase. Although the term was used by Mark Twain in A Connecticut Yankee in King Arthurs Court. From 1929 to 1933 manufacturing output decreased by one third, prices fell by 20%, causing deflation that made repaying debts much harder. Unemployment in the U. S. increased from 4% to 25%, additionally, one-third of all employed persons were downgraded to working part-time on much smaller paychecks. In the aggregate, almost 50% of the nations human work-power was going unused, before the New Deal, there was no insurance on deposits at banks
New Deal
–
Top left: The
Tennessee Valley Authority, part of the New Deal, being signed into law in 1933. Top right: President Roosevelt was responsible for initiatives and programs of the New Deal. Bottom: A public mural from one of the artists employed by the Works Progress Administration, part of the New Deal.
New Deal
–
USA annual real GDP from 1910 to 1960, with the years of the Great Depression (1929–1939) highlighted.
New Deal
–
1935 cartoon by
Vaughn Shoemaker; he parodied the New Deal as a card game with alphabetical agencies.
New Deal
–
Roosevelt's ebullient public personality, conveyed through his declaration that "the only thing we have to fear is fear itself" and his "fireside chats" on the radio did a great deal to help restore the nation's confidence.
25.
Ginnie Mae
–
The Government National Mortgage Association, or Ginnie Mae, was established in the United States in 1968 to promote home ownership. The Ginnie Mae guarantee allows mortgage lenders to obtain a price for their loans in the capital markets. Lenders then can use the proceeds to make new mortgage loans available to consumers and this also helps to lower financing costs and create opportunities for sustainable, affordable housing for families seeking home ownership. In 1934, during the depths of the Great Depression, Congress responded to the crisis by passing the National Housing Act of 1934, which established the Federal Housing Administration. One of the objectives of the FHA was to increase the flow of capital to the housing markets by insuring private lenders against the risk of mortgage default. FHA also was tasked with chartering and regulating a national association that would buy. In 1938, Congress amended the act to create the Federal National Mortgage Association, more known as Fannie Mae. The provisions of the act changed gradually over the years and it was not until 1968, however, in response to a perceived need to further broaden the capital base available for mortgages that the housing finance system began to resemble its current form. Ginnie Mae guarantees the payment of principal and interest payments on residential mortgage-backed security instruments to institutional investors worldwide. These securities, or “pools” of mortgage loans, are used as collateral for the issuance of securities on Wall Street, Ginnie Mae neither originates nor purchases mortgage loans. It does not purchase, sell, or issue securities, accordingly, Ginnie Mae does not use derivatives to hedge and it does not carry long-term debt on its balance sheet. Instead, private lending institutions approved by Ginnie Mae originate eligible loans, pool them into securities and these institutions include geographically diverse mortgage companies, commercial banks, and thrifts of all sizes, as well as state housing finance agencies. In 1970, Ginnie Mae became the first organization to create, even in uncertain times, investors are guaranteed payment of interest and principal, in full and on time. The benefits of this process are passed on to the lenders who can make more mortgage loans at more affordable rates. Ginnie Mae is a wholly owned government corporation, Fannie Mae and Freddie Mac, on the other hand, are government-sponsored enterprises, which are federally chartered corporations, but still privately owned by shareholders. In September 2008, the GSEs were placed under government conservatorship, Ginnie Mae neither originates nor purchases mortgage loans nor buys, sells or issues securities in the U. S. capital markets. The credit risk on the collateral underlying its MB securities primarily resides with other insuring government agencies. Rather, Ginnie Mae is the guarantor of MBS issued by government-approved securities issuers who participate in Ginnie Mae’s program, title 24 of the Code of Federal Regulations Agency Securities Mortgage loan Real estate Fannie Mae Federal Home Loan Banks Freddie Mac Farmer Mac USA Funds Ginnie Mae homepage
Ginnie Mae
–
Government National Mortgage Association
26.
California Housing Finance Agency
–
Known until 2002 as CHFA, CalHFA was rebranded to keep pace with our expanding audience and the growing needs of the affordable housing marketplace and to elevate CalHFA’s profile on all key fronts. These financial products were funded through sale of revenue bonds secured by the mortgage products, the operating costs of the agency are paid by origination and service fees, and the difference between the interest paid on outstanding debt and the interest charged on the loans made. Beginning in 2002, passage of Proposition 46 provided funding for activities through sale of general obligation bonds. This source of funding was extended by passage of Proposition 1C, in 2014, the CalHFA board voted to expand first mortgage eligibility to non-first-time homebuyers. The Single Family Division provides low interest rate home financing to low to moderate income homebuyers in California, as well as down payment, the CalPLUS loan programs feature a CalHFA fixed interest rate first mortgage, insured either through FHA or on the conventional market. This loan is fully amortized for a 30-year term and is combined with the CalHFA Zero Interest Program for down payment assistance, the Cal EEM + Grant combines an FHA Energy Efficient Mortgage with an additional 4% grant to help homebuyers improve their home with energy-efficient upgrades. The Extra Credit Teacher Home Purchase Program is intended for eligible teachers, administrators, classified employees, assistance can be used for down payment. CalHFA is authorized to administer the activities of the California Housing Finance Fund, the California Housing Loan Insurance Fund, CalHFA has $6.8 billion in assets that are mainly loan receivables and investments related to bond proceeds. CalHFA is an independent agency and component unit of state government. Budget information for CalHFA is displayed within that of the Department of Housing and Community Development
California Housing Finance Agency
–
CalHFA logo
27.
U.S. Department of Housing and Urban Development
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The United States Department of Housing and Urban Development is a Cabinet department in the Executive branch of the United States federal government. The department was established on September 9,1965, when Lyndon B. Johnson signed the Department of Housing and it stipulated that the department was to be created no later than November 8, sixty days following the date of enactment. The actual implementation was postponed until January 13,1966, following the completion of a study group report on the federal role in solving urban problems. HUD is administered by the United States Secretary of Housing and Urban Development and its headquarters is located in the Robert C. Weaver Federal Building. McKinney Homeless Assistance Act gives help to communities to deal with homelessness and it includes the creation of the United States Interagency Council on Homelessness of which HUD is a member. 1993 Henry G. Cisneros is named Secretary of HUD by President William J. Clinton, empowerment Zone and Enterprise Community program becomes law as part of the Omnibus Budget Reconciliation Act of 1993. 1995 Blueprint for Reinvention of HUD proposes sweeping changes in housing reform and FHA. 1996 Homeownership totals 66.3 million American households, the largest number ever,1997 Andrew M. Cuomo is named by President Clinton to be Secretary of Housing and Urban Development, the first appointment ever from within the Department. 1998 HUD opens Enforcement Center to take action against HUD-assisted multifamily property owners and other HUD fund recipients who violate laws,2000 Americas homeownership rate reaches a new record-high of 67.7 percent in the third quarter of 2000. A total of 71.6 million American families own their homes - more than at any time in American history. 2001 Mel Martinez, named by President George W. Bush to be Secretary of Housing and Urban Development, is unanimously confirmed by the U. S. Senate on January 23,2001. 2004 Alphonso Jackson, named by President George W. Bush to be Secretary of Housing, mr. Jackson is the first Deputy Secretary to subsequently be named Secretary. Office of Fair Housing and Equal Opportunity, This office enforces Federal laws against discrimination based on race, color, religion, national origin, sex, disability, government National Mortgage Association Healthy Homes and Lead Hazard Control. Partnership for Advancing Technology in Housing The United States Congress enacted the Inspector General Act of 1978 to ensure integrity, the Inspector General is appointed by the President and subject to Senate confirmation. The Inspector General is responsible for conducting and supervising audits, investigations, david A. Montoya, who was sworn in on December 1,2011, is the current Inspector General. The Department of Housing and Urban Development was authorized a budget for Fiscal Year 2015 of $48.3 billion. The budget authorization is broken down as follows, The 203 program offers low down payment loans to primary resident owner occupants or nonprofit groups to buy, one of the most successful HUD programs over the years has been the Multifamily Housing Service Coordinator Program. The Service Coordinator provides case management and coordinative services to residents, particularly to those who are frail
U.S. Department of Housing and Urban Development
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The Department of Housing and Urban Development headquarters in March 2007.
U.S. Department of Housing and Urban Development
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Seal of the U.S. Department of Housing and Urban Development
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Harvard University
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Although never formally affiliated with any denomination, the early College primarily trained Congregationalist and Unitarian clergy. Its curriculum and student body were gradually secularized during the 18th century, james Bryant Conant led the university through the Great Depression and World War II and began to reform the curriculum and liberalize admissions after the war. The undergraduate college became coeducational after its 1977 merger with Radcliffe College, Harvards $34.5 billion financial endowment is the largest of any academic institution. Harvard is a large, highly residential research university, the nominal cost of attendance is high, but the Universitys large endowment allows it to offer generous financial aid packages. Harvards alumni include eight U. S. presidents, several heads of state,62 living billionaires,359 Rhodes Scholars. To date, some 130 Nobel laureates,18 Fields Medalists, Harvard was formed in 1636 by vote of the Great and General Court of the Massachusetts Bay Colony. In 1638, it obtained British North Americas first known printing press, in 1639 it was named Harvard College after deceased clergyman John Harvard an alumnus of the University of Cambridge who had left the school £779 and his scholars library of some 400 volumes. The charter creating the Harvard Corporation was granted in 1650 and it offered a classic curriculum on the English university model—many leaders in the colony had attended the University of Cambridge—but conformed to the tenets of Puritanism. It was never affiliated with any denomination, but many of its earliest graduates went on to become clergymen in Congregational. The leading Boston divine Increase Mather served as president from 1685 to 1701, in 1708, John Leverett became the first president who was not also a clergyman, which marked a turning of the college toward intellectual independence from Puritanism. When the Hollis Professor of Divinity David Tappan died in 1803 and the president of Harvard Joseph Willard died a year later, in 1804, in 1846, the natural history lectures of Louis Agassiz were acclaimed both in New York and on the campus at Harvard College. Agassizs approach was distinctly idealist and posited Americans participation in the Divine Nature, agassizs perspective on science combined observation with intuition and the assumption that a person can grasp the divine plan in all phenomena. When it came to explaining life-forms, Agassiz resorted to matters of shape based on an archetype for his evidence. Charles W. Eliot, president 1869–1909, eliminated the position of Christianity from the curriculum while opening it to student self-direction. While Eliot was the most crucial figure in the secularization of American higher education, he was motivated not by a desire to secularize education, during the 20th century, Harvards international reputation grew as a burgeoning endowment and prominent professors expanded the universitys scope. Rapid enrollment growth continued as new schools were begun and the undergraduate College expanded. Radcliffe College, established in 1879 as sister school of Harvard College, Harvard became a founding member of the Association of American Universities in 1900. In the early 20th century, the student body was predominately old-stock, high-status Protestants, especially Episcopalians, Congregationalists, by the 1970s it was much more diversified
Harvard University
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Engraving of
Harvard College by
Paul Revere, 1767
Harvard University
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Harvard University
Harvard University
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John Harvard statue,
Harvard Yard
Harvard University
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Richard Rummell's 1906 watercolor landscape view, facing northeast.
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Cambridge, MA
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Cambridge is a city in Middlesex County, Massachusetts, and is a part of the Boston metropolitan area. According to the 2010 Census, the population was 105,162. As of July 2014, it was the fifth most populous city in the state, behind Boston, Worcester, Springfield, Cambridge was one of the two seats of Middlesex County prior to the abolition of county government in 1997, Lowell was the other. The site for what would become Cambridge was chosen in December 1630, because it was located safely upriver from Boston Harbor, Thomas Dudley, his daughter Anne Bradstreet, and her husband Simon, were among the first settlers of the town. The first houses were built in the spring of 1631, the settlement was initially referred to as the newe towne. Official Massachusetts records show the name capitalized as Newe Towne by 1632, the original village site is in the heart of todays Harvard Square. In the late 19th century, various schemes for annexing Cambridge itself to the city of Boston were pursued and rejected, in 1636, the Newe College was founded by the colony to train ministers. Newe Towne was chosen for the site of the college by the Great and General Court primarily—according to Cotton Mather—to be near the popular, in May 1638 the name of the settlement was changed to Cambridge in honor of the university in Cambridge, England. Hooker and Shepard, Newtownes ministers, and the colleges first president, major benefactor, in 1629, Winthrop had led the signing of the founding document of the city of Boston, which was known as the Cambridge Agreement, after the university. It was Governor Thomas Dudley who, in 1650, signed the charter creating the corporation which still governs Harvard College, Cambridge grew slowly as an agricultural village eight miles by road from Boston, the capital of the colony. By the American Revolution, most residents lived near the Common and Harvard College, with farms and estates comprising most of the town. Coming up from Virginia, George Washington took command of the volunteer American soldiers camped on Cambridge Common on July 3,1775, most of the Tory estates were confiscated after the Revolution. On January 24,1776, Henry Knox arrived with artillery captured from Fort Ticonderoga, a second bridge, the Canal Bridge, opened in 1809 alongside the new Middlesex Canal. The new bridges and roads made what were formerly estates and marshland into prime industrial and residential districts, in the mid-19th century, Cambridge was the center of a literary revolution when it gave the country a new identity through poetry and literature. Cambridge was home to some of the famous Fireside Poets—so called because their poems would often be read aloud by families in front of their evening fires, the Fireside Poets—Henry Wadsworth Longfellow, James Russell Lowell, and Oliver Wendell Holmes—were highly popular and influential in their day. Cambridge was incorporated as a city in 1846, the citys commercial center began to shift from Harvard Square to Central Square, which became the downtown of the city around this time. The coming of the railroad to North Cambridge and Northwest Cambridge then led to three changes in the city, the development of massive brickyards and brickworks between Massachusetts Ave. For many decades, the citys largest employer was the New England Glass Company, by the middle of the 19th century it was the largest and most modern glassworks in the world
Cambridge, MA
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Clockwise from top left:
Christ Church,
University Hall at
Harvard University,
Ray and Maria Stata Center at the
Massachusetts Institute of Technology, the Cambridge skyline and
Charles River at night, and
Cambridge City Hall.
Cambridge, MA
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George Washington in Cambridge, 1775
Cambridge, MA
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A map of Cambridge from 1873
Cambridge, MA
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1852 Map of Boston area showing Cambridge and regional rail lines and highlighting the course of the
Middlesex Canal. Cambridge is toward the bottom of the map and outlined in yellow, and should not be confused with the pink-outlined and partially cropped "West Cambridge", now
Arlington.
