Atlanta Home Loan Essay

2705 WordsSep 22, 201111 Pages
Accounting, finance and management 193160010 Assignment 2: Atlanta Home Loan Group B7 s1136011 - Reshma Bhansing s0132764 - Paul Franken s0167290 - Quirijn van Hengstum Atlanta Home Loan In 2002 Al Fiorini started its mortgage lending company in Atlanta, Georgia, Atlanta Home Loan or AHL as it named. Al Fiorini had a lot of experience in the mortgage industry and this led to a fast growing organization in the first few years. Due to its previous experience, Al was able to establish very profitable relationships with a number of banks which enabled him to sell mortgages at very low prices. Because Atlanta was such a big city with severe traffic problems, Al and all of its employees were working from their homes. In 2002 the company had already 4 telemarketers and 8 loan officers on its payroll. To manage his organization Al had some management controls set up. In this report an assessment is given about these controls and the consequences they had for the company both in the situation where he lived in the same area as his employees and where he lived in California. Part 1: Al lived nearby his employees When Al started his company he worked from his home in Atlanta. He bought his lead from list brokers and gave this list to his telemarketers. The list contained all the important information about the possible clients. The telemarketers would receive a base salary plus an additional bonus for every lead produced to ensure they would do their best to sell as much as mortgages possible. The loan officers received 40% of the total loan revenue that AHL originated and an extra 60% on loan they originated by generating their own leads. This performance based bonus focuses only on the output of the employee and is thus considered to be a result control. The names of the produced leads were

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