Mm255-01-Unit8-Discussion-Edwardjulius Critical Thinking Examples

Business

Answer to Question #1: The reason why mortgage lenders sell their own mortgage
Mortgages are specified loans given to a person or a qualified individual. Moreover, this type of funding allows the creditor to have an imposed interest rate. Mortgages could be monetary loans from banks or even a house and lot loan is guaranteed at these programs; given that they are qualified.
Selling the mortgages of mortgage is a process that would give dynamics to the functionality of the whole business world. Second market for mortgages was opened together with trade marking as well as buying market. Mortgage lenders sell their own mortgage because of lack of income, or when they want to buy another form of mortgages. The terms are just adjusted for the new buyer as well (Good Mortgage, 2015).
I personally think that it is a flexible move for mortgage lenders in times of crisis or if he/she wants to earn more. Moreover, the business world is full of competition and to be on the top of applying the basics of marketing then success is guaranteed. This idea can be correlated with the moves of mortgage lenders to sell their own mortgage.

Question #2: Summary of an Article from CNBC.com about reversed mortgage:

Reversed mortgage can be used as a last resort for many retirees. The context of this mortgage it is just the reverted function of a normal mortgaged. The creditors or the banks will give a sum of money in full or monthly to the individual as an exchange for their homes or real-estate property. There are some advantages if a retiree would opt to have reversed montage and one of them is the federal free tax. All of the received payments shall be free-taxed (Schwartz, 2014).
All in all, the reversed mortgage is good at certain times and also bad at times. The proper management of belongings must be taken care with outmost care to prevent yourselves from going broke.

References:

Good Mortgage., (2015). “Why Are Loans Sold?”. Retrieved from:[ http://www.goodmortgage.com/Learn/Rates/Why_Are_Loans_Sold.html]
Schwartz, Shelly K., “Are reverse mortgages easy money or just a dumb move?” CNBC Retrieved from:[ http://www.cnbc.com/id/101485230]