Lessons Learned in Management, Marketing, Sales, and Finance Incentive Practices a Decade after the Subprime Mortgage Crisis

Thomas, J. E. (2017). Lessons learned for management, marketing, sales and finance incentives a decade after the subprime mortgage crisis. International Journal of Business Management, 12(3). doi:10.5539/ijbm.v12n3p19

8 Pages Posted: 24 Feb 2017

See all articles by Jason Thomas

Jason Thomas

Bush School of Government and Public Service; Excelsior College; Grand Canyon University; Concordia University Texas; Northwood University

Date Written: February 22, 2017

Abstract

The subprime mortgage crisis was the most devastating financial crisis since the Great Depression. The steady rise of housing purchases and seemingly limitless increase in home values drew many investors to the United States real estate market. The business growth in this sector was so compelling that financial firms created new secondary markets that were perceived as diversifying risk, which in turn prompted lenders to create innovative funding vehicles and loose and fast loan qualification processes. The federal government was ill prepared to deal with this shift in the financial world to market-based demand, and the results were disastrous. Lenders embraced predatory lending practices, borrowers with bad credit overextended themselves beyond their means, and foreclosures occurred at startling rates as home values plummeted, resulting in a world-wide economic depression. Ten years later, we reflect on the events that led up to and caused the subprime mortgage crisis for lessons learned to improve management, marketing, and finance incentive practices.

Keywords: management incentives, marketing incentives, finance incentives, subprime mortgage crisis

JEL Classification: M1, M31, F65, M11

Suggested Citation

Thomas, Jason, Lessons Learned in Management, Marketing, Sales, and Finance Incentive Practices a Decade after the Subprime Mortgage Crisis (February 22, 2017). Thomas, J. E. (2017). Lessons learned for management, marketing, sales and finance incentives a decade after the subprime mortgage crisis. International Journal of Business Management, 12(3). doi:10.5539/ijbm.v12n3p19, Available at SSRN: https://ssrn.com/abstract=2921947

Jason Thomas (Contact Author)

Bush School of Government and Public Service ( email )

College Station, TX
United States

Excelsior College ( email )

Albany, NY
United States

Grand Canyon University ( email )

Phoenix, AR
United States

Concordia University Texas ( email )

11400 Concorida University Dr.
Austin, TX 78726
United States

Northwood University ( email )

4000 Whiting Dr
Midland, MI 48640
United States

HOME PAGE: http://www.northwood.edu

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