Whether or not the mortgage loan industry needs to be regulated

The Necessity of the Regulation of Mortgage Loan Industry

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Abstract

The real estate business relating to mortgage loan industry is a very important business transaction in the country . Before the crisis appeared in the scene , it helped develop the economy of the country as it provides all people the opportunity to progress economically However , due to the awareness of both the lenders and borrowers of any fraudulent activities related to the business as means to rake profits problems

emerged to the highest level . Foreclosure of real estate properties grow in number due to inability of the borrowers to repay their debt . Thus , there is a need to develop , formulate and implement rules and regulations to eliminate this problem within the mortgage loan industry . This the main of the

The Necessity of the Regulation of Mortgage Loan Industry

Introduction

There is a question on whether or not regulation of the mortgage loan industry is necessary . Based on different reasons and evidences , it is respectfully submitted that there is a necessity to regulate the mortgage loan industry . Without doing so , there will be more people who will suffer the ill-effects of the industry and the economy will be severely affected . Therefore , the relevance of formulating and implementing regulation for mortgage loan industry should be advanced at the earliest possible time

The Necessity of the Regulation of Mortgage Loan Industry : Presentation of Arguments

Financial Crimes Enforcement Network mentioned that in current years regulatory agencies within the federal and state law governance shown and magnified their efforts in curbing mortgage loan fraud ( Mortgage Loan Fraud : An Industry Assessment Based Upon Suspicious Activity Report Analysis . In other words , since there is an undeniable existence of mortgage loan fraud , there should be a strict formulation and compliance of regulations set to prevent these illegal activities

The very foundation of this problem is the fact that in the United States , there is a substantial development in mortgage lending business and of inventive loan products evidenced in its expansion of end user admission to home finance ( Mortgage Loan Fraud : An Industry Assessment Based Upon Suspicious Activity Report Analysis . This expansion of market in the field of mortgage loan industry particularly home financing loan product leads to the existence of suspicious mortgage loan activities implicating fraud in some transactions . Because of that existing problem and the significant increase of related cases , there is a need to be vigilant and resourceful enough on the part of the government to curb the situation

There are many reasons why we need to formulate regulation to control the mortgage loan industry . The Financial Crises Enforcement Network presented that through the suspicious activity reports , it was found out that there is an increase of mortgage loan fraud by 1 ,411 percent in the recent years ( Mortgage Loan Fraud : An Industry Assessment Based Upon Suspicious Activity Report Analysis . With the rapid increase in the rate stated , the reason was accorded to the heightening awareness...