Change the American Philosophy on Consumerism and the...

The best solution to the mortgage crisis America is facing today is both easy . . . and difficult to execute. The solution is two-pronged: change the American philosophy on consumerism and debt while also making concrete changes in the way the lending industry works. Both demand taking a long-term view in order to be successful. A New Philosophy Changing one’s philosophy is easy, but putting it into practice on a daily basis is not. One needs to employ will-power, diligence and the ability to think long-term, all virtues that fell by the wayside long ago in America. Anymore, Americans get what they want, when they want it from a seemingly infinite list of choices and it is all purchased with credit. Americans pay for their immediate†¦show more content†¦As with any business, the savviest professionals are those who are truly educated in their field, and in the case of sales, their products. Not only did banks offer exotic loans that were generally not sagacious for most Americans, but individual salespeople didn’t necessarily understand their products (let alone buyers) which made for a risky combination that led to the current crisis. People signed on the dotted line without understanding what they were committing to, and those employed to guide them through the process were no more versed in the products themselves. Enforcing more stringent certification requirements for individual loan officers would help salespeople to better understand their products, making them more capable of guiding clients into the best fit loans. Finally, in addition to increasing the level of training required for loan officers, it would be beneficial for borrowers to demonstrate a certain level of understanding of what they are committing to. The costs of owning a home are more complicated than a mortgage alone; with the purchase of a mortgage comes the commitment to pay taxes, home owner’s association fees and other hidden costs, not to mention the fact that a person with a mortgage can get a home equity line of credit. Education programs that could be offered through lenders would beShow MoreRelatedThe American Foreclosure Crisis Essay examples2296 Words   |  10 PagesForeclosure is a dreadful aspect of home-owning. The American foreclosure crisis, and its subsequent economic rece ssion, was caused by lateral misguidance on part of private banks, the federal government, and by the millions of people who purchased their homes on credit. 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