The responsibilities of the mortgage brokers to borrowers

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THE SUBPRIME MORTGAGE MARKET MELTDOWN: How Did It Happen?

1. What were the responsibilities of the mortgage brokers to borrowers? To lenders? To investors? How well did they ful?ll their responsibilities? Why?

2. Did some subprime lenders behave unethically? If so, how? Whose interests did the subprime lenders have a responsibility to represent? Did they adequately represent those interests?

3. What motivated the investment bankers to get involved in the subprime market? Did they behave appropriately? Why or why not?

4. Should the borrowers (homeowners) share in the blame? If so, how?

5. What about the investors in MBSs? What could they have done differently?

6. What can be done to prevent future blowups like the one that occurred in the subprime market?

Reference no: EM131908743

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