Legal, Political, And Ethical Dimensions Wk2

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Robert Rosado 11/5/2011 Legal, Political and Ethical dimensions Week 2 Assignment 1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interest you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? Submit a copy of the proposed regulation along with your responses to these five questions. The agency I chose is the Department of Agriculture and this selection interests me because it can potentially affect my house hunting abilities. It proposes that it will be collecting an annual fee of 0.5% from lender’s based on the outstanding loan. My fear is that the lender, to compensate for this fee, will find a way to mitigate this fee by making some sort of annual fee of their own for the loaner. Or use a small print and/or loop whole, which could cost extra money. 1. Describe the proposal/change. As stated above, the proposal has the department of agriculture raising the annual rate of annual loans on lenders from 0.3 to 0.5. It may sound like a small number, but depending on how many loans the lender releases, take the total of the outstanding loans and subtract 0.5 percent a year and that can be a decent amount of money. That’s five thousand dollars on every million. A million dollars is maybe 3 or four loans. You do the numbers, a lot of money per year. 2. Write the public comment that you would submit to this proposal. If the proposed regulation deadline has already passed, write the comment you would have submitted. Explain briefly what you wish to accomplish with your comment. I would write a comment like this: While I like the this proposal because of how it takes a burden off of tax payers, my concern is that by raising the annual fee, with the economic decline in mind, that the lenders will find a way to mitigate their

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