Countrywide Financial Corporation Case Study Example | Topics and Well Written Essays - 1500 words

Countrywide Financial Corporation - Case Study Example Riding on the avowed need to own homes occurring between 1996 and 2006, the mortgage sector of CFC grew tremendously, recording millions of mortgage originations in the years. The shift from prime to subprime mortgages seemed to propel the corporation to greater success. This stemmed from, seemingly, the favorable terms that came with the package. The credit score of the borrower, the down payment and the debt-income ratio were all low, thereby spurring the lower middle and the low-income populations to take advantage of the offer to own homes. These factors significantly contributed to the growth of CFC. The developers of real estate also took full advantage by setting up houses and then selling them later to repay the mortgage, at the equivalent time making a handsome profit (Eastburn, 2011). However, due to the soaring risk involved in lending monies to unsecure and irregular workers in the lower class, cases of mortgage defaulting arose. This was, further, un-helped by the decisi on of the corporation to offer unsecured loans. The bursting of the housing bubble in 2006 further added to the woes as the prices of houses plummeted and cascaded down, the investment capital and interests following closely behind. The inability to repay mortgages was apparent since further loss of jobs and economic strains set on those who had taken the loans (Eastburn, 2011). Whereas it was profits all through for the corporation as far back as time of establishment, the dawning of reality of registering losses was hard to handle. Attempts to revive the corporation by all measures, including acquiring loans and cutting of staff did not help (Eastburn, 2011). The further collapse of the corporation stemmed from the incentives payable to the partners and the rest of the executives. Issuance of unsecured loans to the financially unstable working class did not help matters due to loss of jobs. Eventually, the Bank of America, ending an era for the CFC, bought it. SWOT ANALYSIS Streng ths of a corporation or business setup predominantly show the abilities to stand up to challenges brought about by competitors and any arising changes in the market. Countrywide Financial Corporation, CFC, provided long-term mortgage loans of more than twenty years having a loan-value ratio of over 60 percent, normally 80-85% (Eastburn, 2011). The loans provided to those aspiring to own homes (the loaned) did not need balloon payments when their terms expired; rather the payments spread over the whole life of the loan. The availability of the mortgage across all sections of the population made CFC show a difference from the other mortgage and home financing institutions. The setting up of offices all across the United States further improved accessibility of the corporation by the populations, promoting interactions and selling of mortgages. Weaknesses of a business setup, on the other hand, exhibit the vulnerability to the market changes, competitors and product competition (Eastbu rn, 2011). The confirmation of discrimination based both on race and income ability tended to taint the CFC image. The discrimination, referred to as ‘redlining’, justified by taking into consideration the extra risk involved in lending to persons with unstable and irregular income. After receiving insurance against such persons, there was no way this discrimination could have surfaced. This presented itself as the case since the expectation for uniform lending in the mortgage industry required that they be so. The protection against market entry by other competitors seemed weak, thereby encouraging the entry of competitors who rubbed the profits the wrong way (Eastburn, 2011).

Healthcare system Essay Example | Topics and Well Written Essays - 4000 words

Healthcare system - Essay Example There are a number of health care systems within a nationality that may include the occupational safety and health, military medicine and school health services among many others. The health care systems have identified a number of goals to meet to ensure the health concerns of the population are met. Health systems seek to ensure good health among the people, to help the people to have a fair system of contributing their finances towards the system, and to increase the rate of responsiveness in order to meet the expectations of the beneficiaries of the system. To meet this goals therefore quality of service provided, the efficacy of the provision of these services, their acceptability among the people and their equity in dealing with the target population must be on the forefront of all the health systems. England has adopted a health system known as The National Health Service (NHS) which has the mandate to provide healthcare for English nationals. Serving under the department of health of the government of the United Kingdom, this body is publicly funded and it provides most of its health care services for free apart from some medical services that relate to the eye tests, prescriptions and the dental care as well. This body provides health services like in-patient care, dentistry, primary care, ophthalmology and long time health care to the patients in need. The body has a private clause as well where the patients can privately pay for their medical care. This system of private medical care has been used to expand the services of the National Health Services. Most of the funding used to cater for the services in the National Health Service comes from taxation among other sources. The largest portion of the expenditure of the department of health is taken up by the National Health S ervice. Main body The National Health Services (NHS) is driven by a number of goals in its service to the people of England. It has identified its core value as the provision of quality medical attention to the people regardless of their ability to pay for the services they require. It provides a great number of services to the people including the fore mentioned dentistry services, optical services and the overall medical care among others (Brodie 2003). It aims at providing medical services that are customized in relation to the needs of the people, their preferences and those of their families as well as those of their careers. Some of the aims of the NHS include to; utilize public funds to offer healthcare services to the patients in the NHS system; support and treat staff as valuables; be sensitive to the needs of the different sections of the population; to adopt a collaborative approach to ensure optimal provision of medical services to the patients; and to assist with ensuring the physical as well as emotional well being of the people in the process mitigate inequalities of health among many other aims. Structure The department of health of the government of the United Kingdom has been charged with the control of the NHS. It provides a political inclination to the NHS representing the will of the government in its jurisdiction. Under the department of health are a total of ten Strategic Health Authorities which directly take up the overseeing