Freddie Mac Company Analysis Essay - 275 Words

Freddie Mac Company Analysis (Essay Sample) Content: Freddie Mac Company AnalysisNameCourseCollegeTutorDateIntroductionFreddie Mac also known as Federal Home Loan Mortgage Corporation (FLMC) was created by the Congress in the year in 1970 in order to expand mortgage secondary markets in the country. It is government sponsored enterprise which buys mortgage in the secondary market by issuing guaranteed mortgage related securities. The mission of Freddie Mac is to create liquidity, stability and affordability in US housing market. Currently, the enterprise is working under conservatorship since 2008 and works under Federal Housing Finance Agency (FHFA) instructions. Freddie Macà ¢Ã¢â€š ¬s primary stakeholders are home owners and investors in the housing sector and all tenants.Freddie Mac is focused to create and meet liquidity needs in the residential mortgage market. This can be done through lowering cost for mortgage borrowers. By having Freddie Mac, the government is supporting stabilization of the economy through pro viding housing incentives, of low cost. Freddie Mac is currently running a program by the name "Making Home Affordable Programà ¢Ã¢â€š ¬Ã‚ , which is expected to make rental housing and homeownership more affordable by meeting the needs of the mortgage market. The program is also being driven towards helping families keep their loans by obtaining more sustainable mortgage and avoid foreclosures. By ensuring that mortgages are cheap and that home owners retain their loans, Freddie Mac is committed to reduce the number of foreclosures.Freddie Mac has been able to increase the number of homeowners in America to most citizens. Through its mission of creating liquidity in the mortgage market, the cost of mortgage has gone down and most people in America can afford owning a home. The corporation also ensures that there is stability in the market and avoid situations where the cost of acquiring a home goes beyond a point where most people in the country. These situations will lead to def ault of the mortgage by the homeowners and foreclosures. Freddie Mac has achieved success in that most Americans own their homes or rent houses at very affordable price (Morris, 2012).Five forces of competition analysisThe forces of competition for Freddie Mac are grouped into Porterà ¢Ã¢â€š ¬s five forces of competition. The company has Fannie Mae and Boston Properties as the major competitors in the mortgage industry.Bargaining power of suppliersIn the aspect of bargaining power of suppliers, there is low concentration of suppliers. Low concentration of suppliers indicates that those suppliers have limited bargaining power. Limited number of suppliers does not augur well with the mission of Freddie Macs who have a mission of protecting the mortgage industry and would need increased suppliers to lower costs of mortgage borrowing.Bargaining power of the buyerIn the mortgage industry, which Freddie Mac operates, there is large number of customers who need the entity services, there is limited information available and consumer choice is limited. Freddie Mac has a challenge when customers have limited information on the mortgage market and works to ensure that mortgage information is available to everyone and freely. There is need for different types of mortgages which will increase consumer choices, currently, only floating rate mortgage and fixed rate mortgage are existing.Rivalry of the existing firmsThough Freddie Mac has top rivals such Fannie Mae and Boston Properties Corporation, the firm is very competitive in trading in the secondary mortgage markets. The existing firms do not provide intense competition for the firm. With limited rivalry from the existing firms, there is uncertainty on whether the firm will offer the best services to its clients; the homeowners.Threat of SubstitutesFreddie Mac being a public corporation, which was passed by the Congress and given mandate to lower the cost of borrowing in the mortgage industry, and thus create afforda bility in the housing sector, has limited number of substitutes. Having limited number of substitutes enables the corporation to work out the best strategies which will assist the mortgage industry to be better and limit cases of mortgage default.Threat of new competitorsFreddie Mac is faced with threat of new competitors who will trade in mortgage secondary markets to bring who will bring a better change in the mortgage sector. If Freddie Mac does not give the best to mortgage and homeowners, there is threat that a new corporation will take over the mortgage secondary markets (Porter, 2010).SWOT Analysis of Freddie MacStrengthsFreddie Mac being a corporation which targets individuals and institutional who need investment mortgage has several strengths. Freddie Mac has the benefit of being the market leader in this business. When a firm is the market leader, consumers view it as providing the best services in the industry and opt to go for it. The corporation being government sponso red gives the customer the perception that it is a more secure enterprise than others. Freddie Mac has been recognized by the business community and has also been ranked by the Forbes. The firm has an advantage of having the best skilled labor, and they possess more than 6000 employees providing services.WeaknessesThe company does not have new strategies when it comes to mortgage secondary markets. Freddie Mac should be innovative enough to beat its competitors, who are taking most of their customers. Previous decline in net assets and income in their audited financial reports for 2012 chased away investors. The financial statements shook the confidence of the investors, and the corporation needs to do better with the coming years.OpportunitiesFreddie Mac can benefit if the home loan interest is lowered. Decline in interest market can bring confidence in the residential mortgage market and attract increased investors. As the government is working towards low cost and affordable home s, this opportunity will soon open up to the Freddie Mac. Government efforts to minimize the debt crisis, which were caused by global financial crisis, resulting from housing bubble will help Freddie Mac, through decline in default cases and increased mortgage lending.ThreatsWhen the government opts to change mortgage policies based on lending rules and procedures, investors might feel that the rules are too tough for them to adhere to, and reduce their buying and selling. This would be detrimental to Freddie Mac business. After housing bubble, which occurred in the past four years, there is increased risk in mortgage business. Furthermore, increased competition from existing and threat of new entrants poses a huge threat to Freddie Macs (Morris, 2012).Freddie Mac should work towards maximizing its strengths and minimizing its weaknesses. Every firm has weaknesses, and its only through minimizing them that it attains competitive advantage. Freddie Mac should utilize its position of being the market leader in mortgage loans and increase customers and deliver high quality services. Furthermore, the enterprise being government sponsored should woo more clients, who have the perception that it is secure, and assure its clients that they a secure enterprise. They should create have promotional campaigns in that their investment is less risky than other private owned mortgage firms. The firm having a large pool of competent employees should work on providing the best quality of services. To ensure that these employees do not move to their competitors, the firm should come up with motivational programs aimed at enhancing service delivery. The firm should also retain employees through increased salaries and wages, extra benefits and also provide the best working environment. On the aspect of opportunities, the firm should encourage the government to reduce the rate of mortgage borrowing, and through this strategy, they will increase confidence in the residential mortg age market.To maximize the shareholders value, there is also need to minimize weaknesses and threats. The firm should come up with the best business strategies and avoid risky investments which reduce its assets and the net income. The firm should also think of diversification, which means that these should act as back up incase unfavorable market conditions. Rise in the value of net assets and rise in net income will indicate growth and stability in an organization and this will grow confidence among the investors. In order to eliminate threat of existing and new entrants in the market, Freddie Mac should provide the best mortgage rates and streamline all its in that most of new entrants will find it hard for them to enter the market, and the competitors will find it hard to beat Freddie Mac (Kaplan Norton, 2013).Business Level and Corporate Level StrategiesFreddie Mac can also maximize its competitiveness and profitability through utilizing business level strategies and corporate level strategies. Business level strategies are the actions and procedures that firms take to provide value to customers and attain competitive advantage through their core competencies. Business level strategies in an organization are centered on customers and their goal is to create customer satisfaction, and attain competitive advantage at the same time. Freddie Mac can utilize business level strategies though providing mortgage loans at the lowest price in the market. This business strategy is known as cost leadership. Having the lowest rates while at the same time providing high quality services will make Freddie Mac attain competitiveness among its rivals, and also attract more customers leading to increased profits. Low mortgage rates are also hard to default for most customers and this will lead to minimal foreclosures on property of the clients who have defaulted. This is one of t... Freddie Mac Company Analysis Essay - 275 Words Freddie Mac Company Analysis (Essay Sample) Content: Freddie Mac Company AnalysisNameCourseCollegeTutorDateIntroductionFreddie Mac also known as Federal Home Loan Mortgage Corporation (FLMC) was created by the Congress in the year in 1970 in order to expand mortgage secondary markets in the country. It is government sponsored enterprise which buys mortgage in the secondary market by issuing guaranteed mortgage related securities. The mission of Freddie Mac is to create liquidity, stability and affordability in US housing market. Currently, the enterprise is working under conservatorship since 2008 and works under Federal Housing Finance Agency (FHFA) instructions. Freddie Macà ¢Ã¢â€š ¬s primary stakeholders are home owners and investors in the housing sector and all tenants.Freddie Mac is focused to create and meet liquidity needs in the residential mortgage market. This can be done through lowering cost for mortgage borrowers. By having Freddie Mac, the government is supporting stabilization of the economy through pro viding housing incentives, of low cost. Freddie Mac is currently running a program by the name "Making Home Affordable Programà ¢Ã¢â€š ¬Ã‚ , which is expected to make rental housing and homeownership more affordable by meeting the needs of the mortgage market. The program is also being driven towards helping families keep their loans by obtaining more sustainable mortgage and avoid foreclosures. By ensuring that mortgages are cheap and that home owners retain their loans, Freddie Mac is committed to reduce the number of foreclosures.Freddie Mac has been able to increase the number of homeowners in America to most citizens. Through its mission of creating liquidity in the mortgage market, the cost of mortgage has gone down and most people in America can afford owning a home. The corporation also ensures that there is stability in the market and avoid situations where the cost of acquiring a home goes beyond a point where most people in the country. These situations will lead to def ault of the mortgage by the homeowners and foreclosures. Freddie Mac has achieved success in that most Americans own their homes or rent houses at very affordable price (Morris, 2012).Five forces of competition analysisThe forces of competition for Freddie Mac are grouped into Porterà ¢Ã¢â€š ¬s five forces of competition. The company has Fannie Mae and Boston Properties as the major competitors in the mortgage industry.Bargaining power of suppliersIn the aspect of bargaining power of suppliers, there is low concentration of suppliers. Low concentration of suppliers indicates that those suppliers have limited bargaining power. Limited number of suppliers does not augur well with the mission of Freddie Macs who have a mission of protecting the mortgage industry and would need increased suppliers to lower costs of mortgage borrowing.Bargaining power of the buyerIn the mortgage industry, which Freddie Mac operates, there is large number of customers who need the entity services, there is limited information available and consumer choice is limited. Freddie Mac has a challenge when customers have limited information on the mortgage market and works to ensure that mortgage information is available to everyone and freely. There is need for different types of mortgages which will increase consumer choices, currently, only floating rate mortgage and fixed rate mortgage are existing.Rivalry of the existing firmsThough Freddie Mac has top rivals such Fannie Mae and Boston Properties Corporation, the firm is very competitive in trading in the secondary mortgage markets. The existing firms do not provide intense competition for the firm. With limited rivalry from the existing firms, there is uncertainty on whether the firm will offer the best services to its clients; the homeowners.Threat of SubstitutesFreddie Mac being a public corporation, which was passed by the Congress and given mandate to lower the cost of borrowing in the mortgage industry, and thus create afforda bility in the housing sector, has limited number of substitutes. Having limited number of substitutes enables the corporation to work out the best strategies which will assist the mortgage industry to be better and limit cases of mortgage default.Threat of new competitorsFreddie Mac is faced with threat of new competitors who will trade in mortgage secondary markets to bring who will bring a better change in the mortgage sector. If Freddie Mac does not give the best to mortgage and homeowners, there is threat that a new corporation will take over the mortgage secondary markets (Porter, 2010).SWOT Analysis of Freddie MacStrengthsFreddie Mac being a corporation which targets individuals and institutional who need investment mortgage has several strengths. Freddie Mac has the benefit of being the market leader in this business. When a firm is the market leader, consumers view it as providing the best services in the industry and opt to go for it. The corporation being government sponso red gives the customer the perception that it is a more secure enterprise than others. Freddie Mac has been recognized by the business community and has also been ranked by the Forbes. The firm has an advantage of having the best skilled labor, and they possess more than 6000 employees providing services.WeaknessesThe company does not have new strategies when it comes to mortgage secondary markets. Freddie Mac should be innovative enough to beat its competitors, who are taking most of their customers. Previous decline in net assets and income in their audited financial reports for 2012 chased away investors. The financial statements shook the confidence of the investors, and the corporation needs to do better with the coming years.OpportunitiesFreddie Mac can benefit if the home loan interest is lowered. Decline in interest market can bring confidence in the residential mortgage market and attract increased investors. As the government is working towards low cost and affordable home s, this opportunity will soon open up to the Freddie Mac. Government efforts to minimize the debt crisis, which were caused by global financial crisis, resulting from housing bubble will help Freddie Mac, through decline in default cases and increased mortgage lending.ThreatsWhen the government opts to change mortgage policies based on lending rules and procedures, investors might feel that the rules are too tough for them to adhere to, and reduce their buying and selling. This would be detrimental to Freddie Mac business. After housing bubble, which occurred in the past four years, there is increased risk in mortgage business. Furthermore, increased competition from existing and threat of new entrants poses a huge threat to Freddie Macs (Morris, 2012).Freddie Mac should work towards maximizing its strengths and minimizing its weaknesses. Every firm has weaknesses, and its only through minimizing them that it attains competitive advantage. Freddie Mac should utilize its position of being the market leader in mortgage loans and increase customers and deliver high quality services. Furthermore, the enterprise being government sponsored should woo more clients, who have the perception that it is secure, and assure its clients that they a secure enterprise. They should create have promotional campaigns in that their investment is less risky than other private owned mortgage firms. The firm having a large pool of competent employees should work on providing the best quality of services. To ensure that these employees do not move to their competitors, the firm should come up with motivational programs aimed at enhancing service delivery. The firm should also retain employees through increased salaries and wages, extra benefits and also provide the best working environment. On the aspect of opportunities, the firm should encourage the government to reduce the rate of mortgage borrowing, and through this strategy, they will increase confidence in the residential mortg age market.To maximize the shareholders value, there is also need to minimize weaknesses and threats. The firm should come up with the best business strategies and avoid risky investments which reduce its assets and the net income. The firm should also think of diversification, which means that these should act as back up incase unfavorable market conditions. Rise in the value of net assets and rise in net income will indicate growth and stability in an organization and this will grow confidence among the investors. In order to eliminate threat of existing and new entrants in the market, Freddie Mac should provide the best mortgage rates and streamline all its in that most of new entrants will find it hard for them to enter the market, and the competitors will find it hard to beat Freddie Mac (Kaplan Norton, 2013).Business Level and Corporate Level StrategiesFreddie Mac can also maximize its competitiveness and profitability through utilizing business level strategies and corporate level strategies. Business level strategies are the actions and procedures that firms take to provide value to customers and attain competitive advantage through their core competencies. Business level strategies in an organization are centered on customers and their goal is to create customer satisfaction, and attain competitive advantage at the same time. Freddie Mac can utilize business level strategies though providing mortgage loans at the lowest price in the market. This business strategy is known as cost leadership. Having the lowest rates while at the same time providing high quality services will make Freddie Mac attain competitiveness among its rivals, and also attract more customers leading to increased profits. Low mortgage rates are also hard to default for most customers and this will lead to minimal foreclosures on property of the clients who have defaulted. This is one of t...

I Completely Seduced ] Is A Free Form Poem - 1223 Words

[completely seduced] is a free form poem focusing on the efforts and transformative process of motherhood. Brandt utilizes literary elements such as structure and space to directly address an impacting message to her readers. The integration of transformation in [completely seduced] strongly influences a connection between reader and speaker by indulging in the aspects and theme of a mother’s unconditional love. Through literary elements and a strong globally experienced theme, Di Brandt creates a powerfully raw message about the effects of being a mother and raising a child. Background: Di Brandt is a mother of two daughters. While raising the girls, she attended graduate school to further her education in literature; going on to become a†¦show more content†¦The story describes a change in everyday life following motherhood, as well as the seductive pleasure found in providing for, caring for, and sacrificing for a little one-- all to see yourself: â€Å"in the dark pool / of your baby’s eyes† (Brandt, 13/14). The spacing and structure of the poem is set up to allow flow and momentum in the poem and its narrative. The speaker’s voice is present with emotion as emphasised in a natural rhythm of thought offering an honest and bare interpretation of motherhood. The open â€Å"blank space† of the poem encourages a calm and breathy atmosphere, fulfilling a mood of tranquility and bliss. Each stanza is short with a couple quick fragmented thoughts before closing each section with the power of a single word. 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Exploring The Alienation Theme Of V.s. Naipaul s A...

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Company and Commercial Law Capacity

Question: Discuss about the Company and Commercial Lawfor Capacity. Answer: Introduction A contract is a legally binding agreement between two or more persons. A contract derives its binding nature from its elements or essentials. The essentials of a valid contract include; offer, acceptance, consideration, capacity, certainty of terms and intention to create legally binding agreement. All the elements must exist for a contract to have the force of the law such that an innocent party in case a breach occurs can move to court to claim damages or specific performance. Contract Formation Whether there was a Contract Between Vanessa and Li Wu and John In determining whether a contract existed between Vanessa and Li Wu and John, the essential elements for contract formation have to be analysed. The Advertisement put by John is not an offer. It is an invitation to treat. It is Vanessa and Li Wu who made an offer by booking through the website. Their offer is accepted by John and communication of the acceptance is done through email which they receive. In Partridge v Crittenden[1] , where the defendant through an advertisement in the magazine offered for sale bramble finches contrary to section 6 of the 1954 Protection of Birds Act. The court of appeal quashed the defendants conviction on the grounds that the said advert was an invitation to treat and not an offer for sale. Courts use the literal rule to interpret and determine whether a valid offer has been made or not. The communication of acceptance has been made by John through mail and therefore, the postal rule as to communication of acceptance is applicable. Communication was deemed to have occurred at the time when the email was received by both Vanessa and Li Wu. An advert can in certain circumstances amount to an offer. For instance, in the case of Carllil v Carbolic Smoke Ball Company[2], it was held that the advert could be construed as an offer as the plaintiff performed the conditions contained in the advert and any reasonable man could have used the smoke balls and that acceptance of an offer can be through performance or conduct. This scenario is distinguishable from Carllil case above as there was no complete performance of the conditions in the advert. It is an invitation to treat to which they made an offer which John accepted and communicated his acceptance. Generally, in contracts for commercial purposes, the intention to be bound is presumed to exist. The contract between Vanessa and Li Wu and John is of a commercial nature and therefore, the parties had intention to be bound by the terms of the contract. Another essential element of a valid contract is the consideration. Consideration refers to a benefit to the offeror or a detriment to the offeree. It is measured through monetary value. Love and affection has been held to amount to consideration. In this case Vanessa and Li Wu both paid the price of $ 80.00, an amount which is considered as the consideration. Therefore, a legally binding contract existed between the parties as all the elements of a valid and legally enforceable contract existed. The contract was made when Li Wu and Vanessa made a booking in Johns Website and paid the $ 80.00 and John accepting their offer through communication by email. Their signing of the form signified that they agreed to be bound. Whether John is Liable for Breach of Terms of the Contract A contractual term can be said to refer to what the parties agreed on during the negotiation of the contract. Terms are either express or implied. An express term is what is contained in the contract document. It is what the parties agreed on. Implied terms however are not contained in the contract document; parties might have not agreed on them but are implied under common law through custom or statute. John is in breach of both the express and implied terms in the contract. The advert stated that there was a reward of a certificate, a pair of bathers and a bottle of sunshine. The rewards contained in the advert are express terms that might have induced both Vanessa and Li Wu to enter into the contract. John by representing that he was joking by promising a pair of bathers and bottle of sunshine is a breach of an express contractual term. The court can imply a term into the contract if that term or practice is common in a particular trade. For instance, the contract between John, Vanessa and Li Wu is one related to tour guidance and operation. In this type of contract to provide tour and skating services, there are approved standards required of safety equipment to be used. Tour operators are also required to register and obtain license to operate. The tour operators are required to obey warnings on the safety of a river especially after heavy downpour. These are implied terms that are not contained in a contract and they are included by the court especially where damage occurs. They are common in the practice and contained in the statutes. In Hutton v Warren[3], the court held that where it was a common practice in a particular trade for certain terms to exist, such terms would be implied in any contract in that trade. John is therefore in breach of the terms of the contract and cannot claim protection from the exclusion clause. John did not take steps to bring to the attention of the parties, the existence of the exclusion clause and therefore cannot seek protection from the same. He is liable for the injuries sustained by Vanessa the signature notwithstanding. Whether John is Liable for Breach of Statutory Guarantees Consumer guarantees on the provision of services are provided by part 3-2-1 of the Australian Consumer Law. The first statutory guarantee relates to provision of services with due care and skill. John is in breach of this statutory guarantee as he acted with a lot of carelessness as regards to the safety of both Vanessa and Li Wu. He failed to provide standard safety gears and a failure to adhere to the warning that the river would be unsafe after a heavy down pour. John is not registered as a tour operator. The authorities therefore did not have the opportunity to interrogate and ascertain his skills, expertise and experience as a tour guide. His skills cannot be therefore ascertained; he is in breach of the statutory guarantee as a result. There is also a guarantee as to the fitness for purpose. That the service provided or the implements for the provision of the intended services should be fit to achieve the intended results. John used cheap safety gears which could not protect the applicants from incurring injuries and enable them get out of the river unhurt. He is therefore in breach. Conclusion While one may not exclude the guarantees contained in the consumer Law, liability for personal injury resulting in death are however exempted under the law. They are categorized as injuries occurring from a sporting activity which require the exertion of physical force. They are however liable if it is established that the implements were of a lower quality. In this case therefore, John is liable for breach of the statutory guarantees and is liable to pay damages and the prayers for breach of contract. List of Cases Partridge v Crittenden Carllil v Carbolic Smoke Ball Company Hutton v Warren