The role group membership theories play in subprime home mortgage Essay

The role group membership theories play in subprime home mortgage lending - Essay Example there is no evidence defending this position of Predatory Lending; however, it is the intent of this paper to supply an additional theory to the prevalence of subprime lending to lower income families. I postulate that the prevalence of this type of lending is, in part, due to the effects of group memberships. Numerous studies have been conducted over the past decade concerning the prevalence of subprime lending for low income families. The studies have shown that low income families have a higher rate of subprime loans when compared to their middle and upper class counterparts, and that payment history makes little difference. According to the US Department of Housing and Urban Development (2000); Unequal Burden: Income and Racial Disparities in Subprime Lending in America, â€Å"Subprime loans are three times more likely to be found among low-income neighborhoods than in high-income neighborhoods - In low-income neighborhoods, subprime loans accounted for 26 percent of total loans in 1998 – compared with only 11 percent in moderate-income neighborhoods and just 7 percent in upper-income neighborhoods† (p. 2). In addition, Association of Community Organizations Organized for Reform Now (ACORN), released a study (1999) â€Å"Financial Apartheid† in Mortgage Interest R ates which stated that high cost mortgage financing was disproportionately more prevalent in lower income borrowers whether it was for home purchase or the refinancing of an existing home. The previous statements are what this paper is set to examine from the perspective that group membership plays an integral role in the presence of subprime home mortgage lending to lower income families. The following pages provide a thorough description of the subprime home mortgage lending market, the refinancing practices of lenders and a description of what is known as Predatory Lending. After that I will lay out group membership theories and describe the attributes of the target group: lower income

Practical Chemistry Report Essay Example | Topics and Well Written Essays - 1750 words

Practical Chemistry Report - Essay Example Molar absorptivity is fixed the moment the reactant is fixed, cell length is standardized and therefore, its effect is also fixed. Now only variable deciding intensity of the absorbed and therefore transmitted light is the concentration of the reactant. Therefore, concentration of the reactant at a particular time can be read directly from the detector reading of the transmitted light. Care should be taken to subtract the reading corresponding to the bare solution i.e. the solution having no reactant. Data from both the experiments has been plotted separately on semi log scale i.e. ln[A] was plotted against time t (s) using excel software. Data points were plotted as a X-Y scatter plot and a linear interpolation was used as nature of the plot for the first order reaction is linear from the theory. Slope of the line gives value of the rate constant ÃŽ » and the intercept gives value of the initial concentration i.e. [Ao] Figure 1 shows variation of ln[A] vs time for Experiment 1. The close proximity of the data points from the linear interpolation line confirms that all the data points are very accurate. The same is confirmed by very high value of R2 which is 0.9929. One should note that value of R2 being 1 means all the data points will fall on the interpolation line. That is the ideal condition which never happens in actual experiments. There is another useful parameter half life (t1/2) associated with a first order reaction kinetics. This is the tie period during which concentration of the reactant is reduced to half of its original value. Value of half life (t1/2) can be calculated by putting [A] = [Ao]/2 and setting t as t1/2 in the integrated form of the rate equation derived above. This comes out to be In experiment 1 value of the rate constant (ÃŽ ») is 0.0006. Therefore, value of half life comes to be 1155 second. One should check in the experimental data whether really [A] is halving in every 1155s. What we find is that