The Housing and Economic Recovery Act (HERA) of 2008 was part of the financial reform legislation passed by Congress in response to the subprime mortgage crisis.
HERA allowed the Federal Housing Administration (FHA) to guarantee up to $300 billion in new 30-year fixed-rate mortgages for subprime borrowers.
HERA is made up of several by-laws, including the Housing Assistance Tax Act, the FHA Modernization Act, and the Safe and Fair Mortgage Licensing Enforcement Act.
HERA has established minimum down payment standards for FHA loans.
An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.
The 2,000 investor limit or rule is a key threshold for private businesses that are unwilling to disclose financial information for public consumption.
The 500 shareholder threshold was a rule set by the SEC that required companies to publicly disclose financial statements and other information if they reached 500 or more individual shareholders.
An absolute advantage is when a manufacturer can provide a greater quantity of a product or service for the same price or the same quantity at a lower price than its competitors.
Animal spirits come from the Latin spiritus animalis: “breath that awakens the human mind.” It was introduced by the British economist John Maynard Keynes in 1936.