Business Ethic : Chapter 3

8/9/2019 Business Ethic : Chapter 3

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Ethical dilemma : A diferent perspective

Honest Team’s member :Nur Hidayah Ibrahim

Nurul Atikah LokmanSiti Amirah Shaudi

Hallan Hashim

Mohd Khairul Hisyam he !ahaya

"a#e :$$%$&


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Foreclosures, Predatory

Lending & the Ethical Dilemma


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IN'()*+'I)N

Mortgage company dealing ith many!oreclosures" Houses are orth #$%$' less then hat they paid" They

can still a(ord the mortgage, but is itorth it)

*ll sta( meeting to discuss problem"

+enior leaders remind eeryone thata mortgage is a legal contract" Multibillion dollar bailouts leae people asictims" Media coerage is negatie

to ban-s" Mort a e holders are


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,+ES'I)N . :

/! homeoners made poor 0nancialdecisions ta-ing too much e1uityout o! their houses or buying at the

rong time % Do the predatorylending practices o! the ban- andmortgage companies 2usti!yal-ing aay !rom those

mortgages)


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'his is because it is a legal binding

contract bet/een

the Mort#a#e Service ompany act

/ithin their capacity and their o/npolicy0


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Ho/ever to be more ethical or !air to the homeo/ner1 the Mort#a#eService ompany could gierecommendation to thehomeo/ner0


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D i s c u s s

• L i s t e n 2 E 3 p l a i n

E n 1 u i r i e s •

S e e k 4 o r H o u s i n # * e v e l o p e r

a t t e n t i o n

P r o p o s e d a l t e r n a t i ,

e s • S h o r t s a l e s • L o a n m o d i 5 c a t i o n

• * e e d % i n % l i e u o 4 4 o r e c l o s u r e


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)"'I)N ') A6)I* 7)(EL)S+(E

3" +H45T +*LE+ 'he lender allo/s you to sell the house 4or less

than the outstandin# loan amount1 takes theproceeds and 4or#ives any remainin# debt

.0 L4*6 M4D/F/7*T/46

8ank /ill help borro/ers #et their mort#a#esad9usted

0 DEED%/6%L/E8 4F F45E7L4+85E

8e able to voluntarily ;#ive back; your

property to the lender


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!ES0

It is because buyers are e3pect to #et

#ood return on their investmentrather than losses0


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)"'I)N ') KEE" 'HEH)+SE

A process o4 obtainin# a

ne/ mort#a#e (educe monthly payments1lo/er the interest rates1 takecash out o4 the e3istin# home4or lar#e purchases or chan#emort#a#e companies0

4PT/46T4 +*;E

THEH48+E

5EF/6*67/6<

P54


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,+ES'I)N


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)NSE,+ENES )7 7)(EL)S+(E

-0 /MP*/5ED THE 75ED/TEfect your credit score

.0 M4;/6< 74+T

+tilities1 deposits1 movin# trucks1 and other e3penses

0 D/FF/78LT T4


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)NL+SI)N

Make sure homeo/ners understandall o4 the options and conse@uencesbe4ore decided to /alk a/ay 4rommort#a#e payment


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'HANK !)+

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Business Ethic : Chapter 3