5/27 Journal

This morning we talked about what the key takeaways from yesterday’s guest speakers was.
In addition, we gave presentations on the home mortgage 101 video, the new home
construction video and how and when to obtain a personal loan. A home mortgage loan is a
loan that the bank gives for the purchase of a primary residence. This type of loan is the longest
and largest loan that most people take out. There are four factors that go into a loan which is
referred to as Principle, Interest, Taxes, and Insurance (PITI). Principle is defined as the amount
of money that you owe the bank. Interest is the rate at which you are borrowing money. Taxes,
is the money that is put to the side into another account and is take out about twice a year to
help pay for things like school and government workers. Lastly, insurance is paid monthly, if
something unexpected happens to your home, you are compensated after the deductible.
Private Mortgage Insurance (PMI) is for those who put down less than 20% ,it will give the
lenders some breathing room just in case you don't end up paying it all back.
Home Construction loans are defined as Is a short-term loan that covers only the costs of
custom home building. Once the home is built, the prospective occupant must apply for a
mortgage to pay for the completed home. The lender does not know how the house will be
built so the house is built in phases. The lender will send someone out to check the house at
each phases then disperse the money. There are two main types of home construction loans:
the standalone loan (Construction Only Loan) and the Construction to Permanent loan.
We also discussed the laws and regulations pertaining to lending. The Dodd-Frank Act,
Title X, in particular created the Consumer Financial Protection Bureau (CFPB), which has broad
powers to write regulations governing consumer financial products and services. The CFPB also
has regulatory enforcement authority over the consumer behavior of large banking institutions
and nonbank financial service providers, while the bank regulators continue to enforce the
consumer protection laws and regulations for small and mid-size banks. The CFPB’s authority is
wide-ranging, and the agency is continually monitoring potential areas of abuse and issuing
rules and guidance affecting many areas of the consumer borrower-lender relationship. For
example, The CFPB’s has been especially active in issuing regulations to reform mortgage
lending practices, as mandated by the Title XIV of the Dodd-Frank Act.
The Equal Credit Opportunity Act (ECOA) of 1974 and Regulation B which implement the
act’s provisions, prohibit lenders from denying s loan or increasing the cost of a loan based on
personal characteristics or conduct unrelated to creditworthiness. Specifically, lenders are
prohibited from discriminating against applicants on the basis of age, race, color, religion,
national origin, sex, marital status, or receipt of income from public assistance programs.
Lenders are also prohibited from discriminating against a person who has exercised his or her
rights under the Consumer Credit Protection Act (which includes ECOA and the Truth in Lending
Act). Regulation B requires lenders to give consumer applicants written reasons when a loan
application is rejected or a statement that they may request the reasons.
Dr. Annamalai started his presentation by speaking about cybersecurity as a career. In
his presentation he said that the demand for a career in cybersecurity is strong. He went on to
express that it is considered to be a highly rewarding career with a good salary, and there is a
high job satisfaction rate. In cybersecurity learning never stops. Next, he went on to discuss the
fundamentals of computer networking. In his presentation he mentioned that the greatest
advancement in technology and communication over the past 30 years has been the
development and advancement of the computer networks. He went on to give examples of
computer networks and applications of computer networks. Next, he discussed both circuit
switched, and packet switched networks and gave the advantages and disadvantages of both.
He went on to describe what the internet is and explained that protocols are simply a set of
rules for how we control and send messages. In his presentation, he described the scalability
issue, as well as described the typically seven-layer networking model. The internet protocol
stack was reduced from seven layers to five layers by combining several layers. The application
layer, presentation layer and the session layer are combined to make the application layer in
the Internet Protocol Stack. He concluded his presentation by speaking and comparing both the
client-server architecture and P2P architecture.