New Century

In: Business and Management

Submitted By emre8506
Words 849
Pages 4
1. New Century’s strategy was to aggressively pursue the origination, sale, and securitization of subprime mortgages. Since its target market consisted of borrowers with low FICO scores, it could charge interest rates 2-3% higher than prime rates as well as higher origination fees. New Century utilized short term credit known as “warehouse loans” to secure the funds needed to lend to subprime borrowers. The warehouse loans were typically paid off within 30-90 days of origination as New Century sold or securitized new subprime mortgages. The subprime mortgages were pooled and sold either as a whole loan sale to an investment bank or they were sold as securitizations structured as sales to a SPE Trust. New Century also made income by structuring securitizations as financing in which it would keep originated mortgages on the balance sheet as LFHI. The difference between interest earned from these loans and interest paid to bond investors was profit to the company. With the real estate market exploding between 2002 and 2007, New Century’s aggressive strategy led them into increased risky lending such as ARMS, interest-only mortgages, 100% loan-to-value loans, and stated income loans. The New Century business model depended on real estate values continually going up and certainly not down. 2. Primary risks: Large scale default was a legitimate risk that was taken on by New Century Financial. High levels of default would increase New Century’s liabilities, because of their obligation to aid in covering losses that were realized by investors within the SPE trust, while cutting off the capital/liquidity being provided through sales and short term loans. To receive “warehouse loans” New Century had to comply with minimum liquidity and debt-ratio requirements. For any reason, including effects of economic cycle, if New Century did not maintain sufficient…...

Similar Documents

Century

... APAKAH PEMERINTAH HARUS MEMBAILOUT BANK CENTURY? A. Pendahuluan 1. Krisis Tahun 2008 Krisis keuangan yang dialami oleh bank Century hingga saat ini tidak lepas dari dampak dari krisis global yang dialami oleh dunia perbankan. Hal ini berawal dari permasalahan kegagalan pembayaran kredit perumahan (subprime mortgage default) di Amerika Serikat, yang dipicu oleh maraknya penggelembungan harga perumahan di AS yang didorong kebijakan-kebijakan Bank Sentral Amerika (the Fed) yang kurang pruden untuk menstabilkan sistem keuangan sejak bertahun-tahun. Kondisi ini didorong oleh keinginan untuk memelihara permintaan properti perumahan agar tetap tinggi, terutama bagi kalangan berpenghasilan rendah yang tidak memiliki kapasitas keuangan yang memadai (ninja loan yaitu pinjaman terhadap nasabah yang no income, no job, & no asset). Kredit perumahan ini kemudian disekuritisasi secara hibrid agar lebih menarik bagi investor yang terdiri dari bank, perusahaan sekuritas, reksadana, dana pensiun dan asuransi. Celakanya, banyak kredit tak terbayar dalam jumlah besar dan merata. Akibatnya, bank-bank kesulitan untuk membayar dan investor dengan cepat menarik dananya dari produk-produk perbankan disaat harga masih tinggi sehingga hal ini memacetkan perputaran uang di pasar hipotik. Hal ini menyebabkan pula struktur pasar uang yang produknya saling terkait satu sama lain menjadi terganggu. Termasuk juga jaminan obligasi utang (collaterlaised debt obligation/CDO) sebagai bentuk......

Words: 3479 - Pages: 14

21st Century

...Privacy in the 21st Century Sandra Bland ENG 122 Jason Romero March 25, 2013 How do you feel walking around knowing that you are being monitored at all times by cameras? Somebody is watching every step you take. Doesn’t that creep you out a little? You post something on Facebook and decide to delete it later on; did you know it will always be there no matter how many times you have deleted it. You may not see it, but others can. In today’s society, privacy rarely exists anymore. There are certain tools and gadgets people use when trying to invade somebody’s privacy including hidden cameras and satellites. Privacy no longer exists in my eyes because of all the new technologies and programs allowing the invasion. What is privacy? Do people today really understand what privacy is? Or have they really got to experience some privacy? The definition of privacy is allowing and individual or group to “seclude them or information about themselves and thereby reveal them selectively.” When something is private, it is usually something personal or valuable to someone. Everyone likes privacy, but it is no longer “available.” Everything people hope is private is no longer private. An example is, before data bases were even created a patient’s information was recorded and put into files in a filing cabinet. There were no security precautions preventing another doctor from exploring somebody’s files. A doctor could do anything with the files without anybody knowing because there......

Words: 1807 - Pages: 8

Twentieth Century

...Standing at the turn of the new century, we observe the twentieth century as a great advance in technology. With those advances, human lives have changed dramatically. In some ways, life is worse, but mostly, it is better. So personaly speaking, I am, and probably will always be, one of those who agree with the idea that technology has made the world a better place to live. First of all, technology has brought with it a more comfortable life. Not only do we use aircondition and heating system during the summer and winter, but also do we take many changes in food preparation methods to make so delicious food. Due to the development of architecture and so on, living conditions are greatly improved nowadays. Besides, the world is now more convenient to live. We can travel around by aeroplane and railway network. We can talk to each other faraway by telephone. Several score years ago, it was even daydreaming that we could today obtain information as well as commodities via Internet. The last but not the least, through the process of technology improvement, people begin to realize the fact that only reconciling with the nature can we keep a continuous development. That is why we today pay so much attention to environmental protection. Many factories have achieved economic growth without pollution under certain new technology. These cities are beginning to be very beautiful places to live in. Instances of the same sort can be multiplied indefinitely. When taking into account all......

Words: 316 - Pages: 2

21 Century

...1. Everyday life in the eighteenth century improved because of the scientific developments, advances in public health, and medicines. The one big change was people were moving from the country to the city in search of a better life. This was not realized by ordinary people. The living conditions in the urban society did not favor well for this class. They thought they would have better opportunities in this society but things did not change much for them. The increased population led to many problem including poor housing and meager wages. Many people suffered and died from diseases caused by such deplorable conditions. Another major problem was the sanitation of the city. The poor people lived near and around raw waste that caused illness and death. Scientific discoveries and applied technology of public health and industrial production to save lives and drive continued economic growth improved the lives of many. Industrial cities would be disciplined and would lead to improved progress and change in the living conditions of the urban society. Moving toward the nineteenth century people began to place value on education and family. I believe that this realization drove many changes in the urban society. Families stopped having large families so they could provide better for their children. Improvement made in public health, urban planning, and transportation were the major agents that improved life in the urban society. 2. In my opinion, the life of ordinary people......

Words: 878 - Pages: 4

Frauds of the Century

...{DC(-P[,"^q-' li Frauds of the Century BERNARD MADOFF worked as a lifeguard to eam enough money to start his own securities firm. Almost half a century later, the colossal Ponzi scheme into which it mutated has proved impossible to keep afloat unlike Mr Madoffs 55-foot fishing boat, "Bull,,. The $ I 7. I billion that Mr Madoff claimed to have under management earlier this year is all but gone. His alleged confession that the fraud could top $50 billion looks increasingly plausible:, ' clients have admitted to exposures amounting to more than half that. On December l6th the head of the Securities Investor Protection Corporation, which is recovering what it can for investors, said the multiple sets of accounts kept by the 70-year-old were in "complete disanay" and could take six months to sort out. It is hard to imagine a more apt end to Wall Street's worst year in decades. The known list of victims grows longer and more star-studded by the day. Among them are prominent billionaires, including Steven Spielberg; the owner of the New York Mets baseball team; Carl Shapiro, a nonagenarian clothing magnate who may have lost $545m; thousands of wealthy retirees; and a cluster of mostly Jewish charities, some of which face closure. Dozens of supposedly sophisticated financial firms were caughl out too,.including banks such as Santander and HSBC, and Fairfield Greenwich, an alternative-investment specialist that had funnelled......

Words: 1445 - Pages: 6

New Century Wellness Group

...New Century Wellness Group Business Profile New Century Wellness Group offers a holistic approach to health care with an emphasis on preventive medicine as well as traditional medical care. The company was founded ten years ago by to internal medicine specialists. NCWG has some competition, but no others offer the same range of services. They employ over 20 staff and service a client-base of 8,000 patients. Currently NCWG has one location and is considering an additional. I will ask for addition details about the day to day operations including the billing system as well as insurance verification. Business Processes Patient Intake: Lisa Sung. Data required: Doctor availability and Patient financials. Data Generated: patient information, name, phone, date of birth, insurance, etc; also change in doctor's availability. Check Medical Supplies: Carla Herrera. Data Required: Current supply inventory lists, ordering information, and accounts to bill for supplies. Data Generated: Updated inventory records and incoming supply list. 3. Accounts......

Words: 804 - Pages: 4

New Century Financial

...thoroughly reviewed as well as training the new staff in proper techniques for the mortgage industry may not have had. 3. I was unable to find the actual sox section 404, everywhere I went only had the history/general outline. 4. There is no official formula to making accounting estimates, but they should always include: * Identifying when estimates are necessary * Obtaining relevant information/factors for the estimate * Compile accurate data from which to determine the estimate * Developing assumptions from the information * Come up with the estimate * Check the estimate to ensure it is relevant 5. Some of the standards I feel KPMG failed to comply with are * “In all matters relating to the assignment, an independence in mental attitude is to be maintained by the auditor or auditors.” – I felt that KPMG acquiesced to management and their wishes so that they could remain on the audit which impacted their ability to report failings on the part of New Century. * “The report shall state whether the financial statements are presented in accordance with generally accepted accounting principles (GAAP)” – KPMG released an unqualified opinion even though their experts would not approve of some of New Centuries accounting methods. * “The report shall identify those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period” – New Century made a significant......

Words: 561 - Pages: 3

Discuss the Portrayal of New York Society at the Turn of the Twentieth Century in Edith Wharton’s “the House of Mirth.”

...Discuss the portrayal of New York Society at the turn of the twentieth century in Edith Wharton’s “The House of Mirth.” Edith Wharton’s ‘House of Mirth’ critically depicts New York’s society at the turn of the 19th century as money orientated, unequal and content with its missing morals and ethics. Having experienced first-hand the upper class of America, Wharton is able to expose this dismal society in a way many other writers were unable to. In F. Scott Fitzgerald’s, the Great Gatsby society is also a key theme. Based in the growing New York of the 1920s, Fitzgerald portrays the theme of society through the influx of new money and its difference between those of old money. Due to the historical differences between the two novels, Wharton’s novel can been seen as a criticism of this society; Fitzgerald’s novel uses society to enhance the plot, sometimes he does criticise it. Fitzgerald criticises this society as he reveals it to be a lost generation after a major worldwide conflict, which has turned into a hedonistic and materialistic society. Word Count for Page One: 313 Word Count for Page One: 313 Money plays a big part within the characters’ lives and the society within ‘House of Mirth’. Wealth is an important factor, in order to be accepted into the higher society. Lily teeters on the edge of this society, however her lack of money limits her from being accepted fully. Wharton explores the idea of inherited wealth through characters such as Percy Gryce, she......

Words: 1803 - Pages: 8

Century Banks

...1- Describe the security vulnerabilities exploited by the hackers. “The 21st century bank heist” was one of the biggest bank robberies that demonstrated by a group of hackers, and a global network of cyber criminals operating more than 26 countries stole 45 million by hacking into a database of prepaid debit cards. Hackers got into bank databases, and eliminated withdrawal limits on all available pre-paid debit cards and created access codes then loaded that data into a plastic card (an old hotel's key card or expired credit card) with a magnetic stripe to that particular card now ready to work as long as the card carried the account data and correct access codes. Prepared a network of operatives then blown out to rapidly withdraw money in multiple cities. The cells would take a cut of the money, then launder it through expensive purchases or ship it wholesale to the global ringleaders. It appears no individuals lost money. The thieves plundered funds held by the banks that back up prepaid credit cards, not individual or business accounts affected. The hackers sought out prepaid debit cards issued by two Middle Eastern banks whose databases afforded another point of lax security: RAK Bank (National Bank of RAS AL-KHAIMAH) in the United Arab Emirates and the Bank of Muscat in Oman. 2- What people, organizational, and technology factors contributed to these problems? People factors are on many levels of the company. First is the security team that is in charge of keeping the...

Words: 560 - Pages: 3

New Century Clinic

...Identify at least three business processes that New Century performs and explain who is responsible for the specific tasks. * Order and organize office and clinic supplies - Carla Herrera * Appointment processing - Lisa Sung * Insurance reporting - Tom Capaletti 2. Business processes and the person responsible are: 3. Business Process Person Responsible 4. Prepare office payroll Fred Brown 5. Handle tax reporting Fred Brown 6. Handle profit distribution Fred Brown 7. Maintain patient records Susan Gifford 8. Handle insurance reporting Tom Capaletti 9. Handle accounting Tom Capaletti 10. Manage appointment book Lisa Sung 11. Make patient reminder calls Lisa Sung 12. Prepare daily appointment list Lisa Sung 13. Order office and clinic supplies Carla Herrera 14. Organize office and clinic supplies Carla Herrer 15. Explain how New Century might use a transaction processing system, a business support system, and a user productivity system. For each type of system, provide a specific example, and explain how the system would benefit the clinic. New Century might use a transaction processing system for appointment processing, its most critical day-to-day business operation. It might want to consider a business support system for its patient records that will provide information support for users having to deal with patients. For a user productivity system, New Century might consider a database management......

Words: 475 - Pages: 2

Edu 695 Week 1 Assignment 21st Century Framework Revision New

...EDU 695 Week 1 Assignment 21st Century Framework Revision NEW To Buy This material Click below link http://www.uoptutors.com/edu-695-ash/edu-695-week-1-assignment-21st-century-framework-revision-new This assignment re-introduces you to the framework of 21st Century Skills that you will consider each week as you work to redesign prior coursework for your ePortfolio. Note that a similar format is followed for each of the assignments in this course. You will upload this assignment to the course for evaluation and to your ePortfolio (Pathbrite). Specifically, after reviewing the Framework for 21st century learning, you will redesign or modify a prior assignment from one of your courses in the MAED program that represents your mastery of the MAED program learning outcomes 1, 2, and 3. An assignment you may want to redesign could be in the form of a lesson plan or teaching unit you previously created for a course. Your redesign of the assignment must show a representation of 21st-century learning through incorporation of student outcomes and support systems, which are defined as follows: •    Student Outcomes: Learning and Innovations Skills (critical thinking, communication, collaboration, and creativity), Core Subjects 3Rs and 21st Century Themes, Information, Media, and Technology Skills, Life and Career Skills. •    Support Systems: Standards and assessments, curriculum and instruction, professional development, learning environments. When selecting an assignment to......

Words: 652 - Pages: 3

Edu 695 Week 1 Dq 1 Diversity Through 21st Century Teaching and Learning New

...EDU 695 Week 1 DQ 1 Diversity Through 21st Century Teaching and Learning NEW To Buy This material Click below link http://www.uoptutors.com/edu-695-ash/edu-695-week-1-dq-1-diversity-through-21st-century-teaching-and-learning-new Diversity Through 21st-Century Teaching and Learning There is a broad range of experiences brought to the school every day by cultural, linguistic, and ethnically diverse students. These unique diversities compel the development and use of different teaching strategies to target each student as an individual. In this discussion, you will explore the concept of supporting diversity through 21st-century teaching and learning. This discussion is also intended to support your performance on the Week One Assignment. Initial Post – Select three of the five prompts below, and then discuss how the Framework for 21st century learning can be applied to each prompt using specific examples of the actions you would take to apply the framework. Your response to each of the three prompts should be one paragraph. a.    Analyze how you can maintain high standards and demonstrate high expectations for all ethnically, culturally, and linguistically diverse students in the classroom. b.    Reflect on ways in which you will choose culturally relevant curriculum and instructional materials that recognize, incorporate, and reflect students’ heritage and the contributions of various ethnic groups. c.    Discuss how you would differentiate instruction for the......

Words: 376 - Pages: 2

Edu 695 Week 2 Assignment 21st Century Skills and Standards New

...EDU 695 Week 2 Assignment 21st Century Skills and Standards NEW To Buy This material Click below link http://www.uoptutors.com/edu-695-ash/edu-695-week-2-assignment-21st-century-skills-and-standards 21st-Century Skills and Standards In this assignment, you need to think about 21st century support systems, the Common Core State Standards (CCSS), and International Society for Technology in Education Student  (ISTE-S) standards and their relationship with quality instructional planning, delivery, and learner achievement. Using the Framework for 21st century learning as a resource, you will redesign or modify a prior activity, such as a lesson plan or curriculum project, that you created in a prior course. The redesigned coursework need to be a representation of your mastery of the MAED program learning outcomes 5 and 7. This assignment will be uploaded to the course for evaluation and to your ePortfolio (Pathbrite). If you do not have previous projects to use in this assignment, please contact your instructor for guidelines on how to proceed. As needed, refer to the MAED program learning outcomes (PLOs) list. Create your assignment to meet the content and written communication expectations below. Content Expectations The Redesign expectations explain what you are required to do with the prior coursework you choose to redesign. The Summary expectations are for the separate written portion of this assignment. •    Redesign – ISTE-S Standard (1 Point): Redesign a lesson......

Words: 613 - Pages: 3

Edu 695 Week 5 Assignment Leadership in the 21st Century Support Systems New

...Assignment Leadership in the 21st Century Support Systems NEW To Buy This material Click below link http://www.uoptutors.com/edu-695-ash/edu-695-week-5-assignment-leadership-in-the-21st-century-support-systems-new Leadership in the 21st-Century Support Systems This assignment requires you to make connections between 21st-century support systems, specifically 21st Century Professional Development components. As the emphasis is on professional development, consider prior coursework that included collaboration, self-reflection, and other components pertaining to your growth as a practitioner and how that may contribute to student outcomes. There are several approaches you could take with this assignment. However, it is recommended the assignment you select to redesign includes at least one of the components of 21st Century Professional Development (as listed below): a.    Highlights ways teachers can seize opportunities for integrating 21st century skills, tools, and teaching strategies into their classroom practice — and help them identify what activities they can replace/de-emphasize. b.    Balances direct instruction with project-oriented teaching methods. c.    Illustrates how a deeper understanding of subject matter can actually enhance problem-solving, critical thinking, and other 21st century skills. d.    Enables 21st century professional learning communities for teachers that model the kinds of classroom learning that best promotes 21st century skills for......

Words: 697 - Pages: 3

The Beginning of Many Different New Languages in the Twelfth Century

...Abstract This is an informational article on how new languages came to be in the early twelfth century. This article also discusses which languages came into Europe and how they arrived there whether it had been though passing performers or musicians. It shows what effect it had during the medieval times. Also, this article explains how the Latin language was strong for the much extended timespan that it survived. It describes where the origins that the different vernaculars played a dominate role in dissipating the Latin language. It also explains what effect it had on the people during the time of change of languages and what outcomes could have participated from the change.   The Beginning of Many Different New Languages in the Twelfth Century Latin was the dominate language during the time of the Roman Empire before its fall in the early twelfth century. It was around the early twelfth century that the Roman Empire began to fall and the Latin language started to dissipate. The change began from people most distant and gradually made its way to the source. Most individuals during this time saw the change to be good and could only fathom the outcome had it continued to grow. Many of the people during this time chose to use their preferred vernacular opposed to the Latin language. As stated by the Editorial Board (2011), “Until the early twelfth century, the language of almost all educated circles in Europe, and certainly in literature, was Latin.......

Words: 1000 - Pages: 4