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Please answer the following questions, three pages.

1. Was the U.S. federal government's 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending firms?

2. Did subprime mortgage loans contribute to the housing bubble? Why did the bubble burst? What were the consequences of the housing bust to borrowers, loan originators, and MBS and CDO holders? Did subprime mortgages contribute to the U.S. financial crisis of 2008?

3. Was CFC pursuing an ethical strategy? Were all of CFC's business practices ethical? Were CFC's compensation practices ethical and in the best interest of shareholders? Did its lending practices harm borrowers? Is there anything unethical about its VIP loan program? To what extent, if any, were unethical strategies or business behavior a problem at CFC?

4. What recommendations would you make to Bank of America executives to ensure that lending practices at its subsidiaries will promote homeownership in a manner that is in the best interest of borrowers, investors in the secondary mortgage market, and the company's own long-term financial interests?

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