In the crisis condition like now, when everything crush down, what we really need to solve our problem? Some people would answer that we need fresh money or we called it bailout. Did it finished our global problem? It could help for a while.

What we need is an idea or fresh idea from freshmen which we never imagine before. We need new generation which have much priceless idea. Recently we called a successful freshmen with “Nouveau Riche” which mean a new rich man. And to create new nouveau riche we need Nouveau Riche University which making and creative community with innovative idea.

Nouveau Riche University give formal environment and modul program to train a freshmen become a new Nouveau Riche. From Nouveau Riche University, everyone who could make their idea become real in our life.

Nouveau Riche University enable students to select courses within various curriculum paths.
Each Nouveau Riche college course has been designed to teach you “how-to” real estate investment concepts and strategies. Understand the advantages and disadvantages of several short-term and long-term real estate investment strategies.

Experience a dynamic education in the midst of like-minded people who share common goals and interests. Participate in case studies, classroom discussion and role-playing exercises that will aid your information retention. build their student’s confidence while learning the procedures, concepts and rules of the real estate investment game.

You have bad credit problem. If you can find a lender who will even consider approving you, the loan will be at an interest rate high. The fact of the matter is that it is after all a fashion to obtain bad credit loans. These loans have resurrected the financial feeling of the people with poor credit in particular.

You need to determine candidly the reason why you have been tagged to bad credit. It might be that you do not take paying bills on time. But more often than not, people just find themselves in a situation where they have a lot of personal debt and something has happened to prevent them from making timely payments, like a job layoff, high medical bills, and many more very valid reasons that are out of the borrowers’ control.

It may be possible to obtain such personal loans from a professional organisation. More so, many other commercial institutions too are working in this direction. You can obtain such money provisions from building societies and high street lenders too. If you are just running short of time, you can use internet tool as for your loan accessing. It is very simple and convenient way to obtain a loan. For all of this, you need to fill out an online application form. Later, your forms are transferred to different websites. Lenders review your application forms and make their mind if you are touching their yardsticks.

For better financial feasibility of the borrowers, these loans have been formatted into secured and unsecured forms. For the secured form of borrowing, you need to place a worth asset as of the assurance of you loan repayment. On the other hand, unsecured forms of borrowing which are obtained without any sort of pledging placing. Unsecured loans are best suited to tenants, and for those too who need money urgently. Yes, since there is no evaluation takes place, lenders do not have to calculate the value and make documentation.

Likely that other loan, the raised fund under bad credit loans is invested as other personal loans are. You can invest the raised amount for your children’s education, home improvement, and business development and above all you can truly invest the amount to pay off your pending liabilities elegantly.

Monetary Policy also is one big factor which influence sub prime mortgage

The Fed is best known for its role in making and carrying out the country’s monetary policy-that is, for influencing money and credit conditions in the economy in order to promote the goals of high employment, sustainable growth, and stable prices.

The long-term goal of the Fed’s monetary policy is to ensure that money and credit grow sufficiently to encourage non-inflationary economic expansion.

The Fed cannot guarantee that our economy will grow at a healthy pace, or that everyone will have a job. The attainment of these goals depends on the decisions of millions of people around the country. Decisions regarding how much to spend and how much to save, how much to invest in acquiring skills and education, how much to spend on new plant and equipment, or how many hours a week to work may be some of them.

What the Fed can do, is create an environment that is conducive to healthy economic growth. It does so by pursuing a goal of price stability-that is, by trying to prevent inflation from becoming a problem.

Inflation is defined as a sustained increase in prices over a period of time.

A stable level of prices is most conducive to maximum sustained output and employment. Also, stable prices encourage saving and, indirectly, capital formation because it prevents the erosion of asset values by unanticipated inflation.

Inflation causes many distortions in the market. Inflation:

· hurts people with fixed income-when prices rise consumers cannot buy as much as they could previously

· discourages savings

· reduces economic growth because the economy needs a certain level of savings to finance investments that boost economic growth

· makes it harder for businesses to plan-it is difficult to decide how much to produce, because businesses can’t predict the demand for their product at the higher prices they will have to charge in order to cover their costs

Prior to bank deregulation, Savings and Loans provided mortgages to home buyers and kept these loans on their books. Non-performing loans had a negative effect on the S&L’s profitability which of course caused tighter lending guidelines such as job stability and decent down payments in order for prospective home buyers to be approved for a mortgage. Way back then, a home buyer had to actually save up enough money for a down payment 10 or even 20% before a bank would ever consider underwriting a mortgage. The checks & balances kept banks solvent and borrowers responsible.

Although this approach worked, some cried foul stating that the regulated system was racist and discriminatory-and there certainly was some truth to this. Skipping forward to the present, banks made a bundle on mortgages over the past five or six years. For the most part, they allowed their underwriting criteria to be stretched so far out of alignment that almost anyone could and indeed did, qualify for a mortgage despite their ability to pay. Some folks even applied for and received mortgages for more than the property was worth. Sometimes for as much as 25% more than their property was worth!

Under the prior system, 125% mortgages would not have been possible because of course these loans were held on the banks’ books and could have led to losses that would have had to have been absorbed directly by the bank.

So what went wrong? Under the current system, these loans were sold to the big Wall Street investment firms who repackaged them as collateralized mortgage obligations (CMO’s), Mortgage Backed Securities (MBS’s) and other similar acronyms. These instruments were then sent to the ratings agencies for their blessing and more importantly a letter rating. Many of these structured finance deals receive AAA ratings-the highest ratings available meaning that in theory, these instruments were least likely to default. How does one create a ‘triple A’ or AAA rated financial instrument out of sub-prime mortgages? Herein lies the magic. These Asset Backed Securities (ABS) are made up of different tranches or slices, each carrying a different risk and reward level. The first dollar of principle and interest is applied to the securities with the highest rating, and the first dollar of loss is applied to the tranche with the lowest ratings.

The lower slices are designed to provide a security blanket that in theory protects the higher-rated securities. The investment banks that package or ’structure’ these securities in order to earn fat fees when they sell them to investors are the same entities that pay the ratings agencies to rate these instruments. Clearly the possibility for conflict of interest is present. If investors and not the investment banks that stand to rake in millions in fees were to pay for the rating, the potential for this conflict of interest would be negated. Furthermore, the investment banks have a vested interest in convincing the ratings agencies of the credit worthiness of these securities.

At this article, I tried to write some analysis about mortgage meltdown, why it could be happen?

People are losing their homes and many more will lose their jobs before the mortgage meltdown works its way through the system.

To paraphrase Alan Greenspan’s remarks on March 17th, 2008, “The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War. The crisis will leave many casualties.”

How many casualties? Experts are predicting that in the next few years, between 15 and 20 million homeowners could have homes worth less than what they owe. Walking away from a bad situation may actually make sense for people who mortgages that are ‘upside down’ considering the fact that refinancing is out of the question and home equity is nonexistent.

It seems quite easy to point fingers at greedy Wall Street titans for causing the sub-prime mortgage crises. They after all, put together the deals that allowed banks to underwrite mortgages and then offload these liabilities to investors. What many fail to realize is that there is no shortage of blame to go around from homeowners buying more home than they could afford to real estate agents looking for more commission dollars. Mortgage brokers and bankers, the banks themselves, ratings agencies such as Moody’s and Standard & Poor’s, Wall Street, the Fed and last but certainly not least, the Federal Government.

In the future, beside selling we still need to know about our customer’s buying power.