Case Atlanta Home Loan

In: Business and Management

Submitted By yli24
Words 624
Pages 3
Case Atlanta Home loan
A. Control and Effects
Controls implemented by AI before he went back to school
Result controls: * Telemarketers – their salaries consist of hourly wage and performance bonus based on leads produced. The performance salary has a motivational effect on amount of leads. * Loan officer – Company paid the loan officers 40% of total loan revenue on they originated and 60% on loans Loan officer originated. The explicit allocation encourages loan officer to increase their revenue. * Processors – AI have not electronic links to monitor the process of applications, but only track the number of credit inquires. The control may be ineffective because the number of credit inquires is not a good indicator of processors’ work.
Action controls: * AI granted Wilbur to manage company according to the licensing agreement and enabled Wilbur fail to sign check against company main bank account without permission of AI. The control is right, but fail to implement properly. Since AI left the blanket checks to an office manager and just required verbally the manager not to use checks without AI’s agreement, which fail to restrict the administrative authority of Wilbur. On the other hands, the restriction doesn’t give Wilbur enough autonomy as a partner to manage company. * Telemarketer developed leads and gave the list of leads’ name to AI, AI distribute to names to loan officers.
People controls: AI selected Joe and Wilbur as new partner to operate company successively.

Controls implemented by AI after he went back to school
Result controls: * Track employee head count, the numbers of leads produced, loan applications funded, office expenses and band activity. By the means, AI monitors whether the employee act in a desirable way. * AI had all of corporate mail forward to him.
Action controls: * Talk with employees by…...

Similar Documents

Atlanta Home Loan

...Case study Atlanta Home Loan A)Identify the devices (controls) that Al Fiorini used to control his business both before and after he went back to school. Classify each control as a results, control, or personnel/cultural type of control. Action control Before he went back to school i. Al monitored the activities of his loan offers by tracking the number of credit inquiries each requested. ii. Al closely monitored the loan application/lead ratio depending on the skill of the loan officer. After he went back to school i. Not letting Wilbur as a new partnership to sign the check written against AHL’s main bank account and Al must approve all outflow of cash from his company. Al also order to Wilbur and Letitia not to write any more checks without his permission. ii. Al monitor monitored tracked the employee head count, number of leads, credit inquiries, loan applications funded expenses and bank activity. By monitoring these actions Al can hold employees accountable for desired actions or undesired actions. iii. Al also had been monitoring the activity in the Bank of America (BofA) account on the internet from Los Angeles. Result control Define dimensions Al must define the right performance dimensions because the goal that are set and the measurements that are made shape employee views and cultural of what is important to do. Moreover, Al must explaining AHL’s dimensions on which result are desired such as profitability and others. Measuring performance This......

Words: 1905 - Pages: 8

Hdfc Bank Home Loan

...HDFC BANK INTRODUCTION HDFC (Home Development Finance Corporation) Home Loan, India have been serving the people for around 3 decades and providing various housing loan according to their varied needs at attractive and reasonable interest rates. Owing to their wide network of financing, HDFC Home Loans provide services at doorstep and helps you find a home as per your requirements. COMPANY PROFILE HDFC Limited founded in 1997 by Ravi Maurya and Hansmukh bhai Parekh, is an Indian NBFS focusing on home loans. HDFC operates through almost 450 locations throughout the country with its corporate head quarters in Mumbai, India. HDFC also has an international office in Dubai, UAE with service associates in Kuwait. HDFC is the largest housing company in India for the last 27 years. HDFC was amongst the first to receive an in principal approval from RBI to set up a bank in the private sector, as a part of the RBI’s liberalization of the Indian banking industry. It was incorporated onincorporated on 30th august 1994 in the name of ‘HDFC Bank Limited’, with its registration office in Mumbai. HDFC began its operations as a scheduled commercial bank on 16 January 1995. HOME LOAN PRODUCTS • Home Loan: Home loans for individuals to purchase (fresh / resale) or construct houses. Application can be made individually or jointly. • Home Improvement Loan: The interiors of any home reflect the personal preferences and tastes of its owners making......

Words: 1383 - Pages: 6

Study on Dhfl Home Loan

...have completed the project titled HOME LOAN WITH PREFERANCE TO DHFL as a part of the course recquiremts of B.M.S of University of Mumbai. I further declare the info presented in this project is true and original to the best of my knowledge. Acknowledgement A successful project can never be prepared by the single effort or the person to whom project is assigned , but it also demand the help and guardianship of some conversant person who helps in the undersigned actively or passively in the completion of successful project. With great pleasure I express my gratitude to our B.M.S co-ordinator prof. Shruti and project guide Prof. Sujata without their help this would not have been completed. They have given their precious suggestions and constructive guidance has been indispensable in the completion of this project work. I would also like to thank the staff of the VPM S’ COLLEGE. They have supported me in this endeavor, and appreciated me in my efforts during my project. Last but not the least I would also like to thank my friends and all the responded. Who directly and indirectly supported to me during my project work, without the help of whom this project would not have been possible. CHAPTER: - 1 GLOBAL VIEW OF HOME LOAN History of home loan in medieval period Before discussing history of loan, let us understand what is exactly meant by the term ‘loan’. Loan is a type of debt. Like all debt instruments, a loan entails the redistribution of......

Words: 12187 - Pages: 49

Case Atlanta Home Loan

...Atlanta Home Loan Eind 2002 raakte Albert (Al) Fiorini steeds meer gefrustreerd en gedeprimeerd. In september 2002 had hij vrij genomen om weer naar school te gaan om zijn MBA te halen. Hij ging ervan uit dat het door hem opgerichte hypotheek verstrekking bedrijf door zijn medewerkers zou worden gerund. Het was nu duidelijk voor Al, dat de medewerkers zijn bedrijf probeerden af te schermen voor Al. En verbazingwekkend genoeg het was ze ook nog gelukt. Al betreurde het, ze hadden niet alleen zijn bezit afgepakt maar ze hebben mijn hele bedrijf gestolen. Terwijl ik 2500 kilometer weg was en bezig was met mijn studie voelde Al zich bijna machteloos om ze te stoppen. Hij heeft veel slapeloze nachten gehad terwijl hij zich af vroeg wat hij kon en moest doen om zijn bedrijf terug te krijgen. Hij vroeg zich ook af waar het mis was gegaan, wat hij gedaan moest hebben om dit te voorkomen. AHL is een hypotheekverstrekker en financieringsbedrijf gevestigd in Atlanta, Goergia. Al Fiorini had het bedrijf opgericht in april 2002, met een eerste investering van ongeveer 40K. Hij begon vanuit huis te werken. Al had vele jaren ervaring opgedaan in de hypotheek en banken industrie. Hij heeft bij verschillende bedrijven gewerkt en hij is een jaar de directeur van de Orange County Chapter of the California Association of Mortage Brokers geweest. Onder zijn leiding groeide AHL in het eerste kwartaal snel. In de zomer van 2002 had het bedrijf 4 telemarketeers en 8 lening specialisten. Alle......

Words: 3245 - Pages: 13

Atlanta Home Loan

...Case --- Atlanta Home Loan 1. Identify the controls that Al Fiorini implemented to manage his business (both before and after he went back to school). Classify each control as a results, action, or personnel/cultural type control. a. Before Al went back to school •Result Controls: ① Telemarketers were paid a combination of an hourly wage plus a performance bonus ($10.00) for each lead produced. ② AHL paid the loan officers 40% of total loan revenue on loans that AHL originated, and 60% on loans they originated. •Action Controls: ① Telemarketers called and gave the potential clients’ names to Al and Al distributed the names to AHL’s loan officers. ② Al monitored the activities of loan offers, track the number of credit inquiries each requested. ③ Al monitored the loan application per lead ratios and their trends. ④ Under Al’s direction, AHL’s business grew rapidly. Telemarketers, loan officers and loan processors all took their responsibility. •Personnel Controls: ① Select the employees who work as telemarketers, loan officers, loan processors… to see if they were satisfied with these position or not. b. After Al went back to school •Result Controls: ① Al monitored AHL operations from afar. ② Al tracked the employee head count, the number of leads produced, credit inquiries requested, loan applications funded, office expenses and bank activity. ③ Al had the authority to sign checks written against AHL’s main bank account. ④ Al had all of...

Words: 637 - Pages: 3

Home Loan

...Home Loan FAQs A. An Introduction to Home loans 1. What is a Home loan? Home loan is the sum of money a bank or financial institution lends you to help you buy your dream home. By taking a home loan from a bank or a housing finance company you pledge your home as the lender’s security for repayment of your loan. The bank or financial institution will hold the title or deed to the property till the loan has been paid back with the interest due for it. Home loans are generally taken for long tenures as the loan amount is usually a huge sum. A home loan can be taken anywhere between 5 and 30 years. The amount of loan one is eligible for is dependent on the individual’s credit profile. 2. What is a down payment? What are the ways in which I can source my down payment? Generally as a thumb rule, banks or financial institutions lend 85% of the cost of the property. 15% of the money is expected to be paid as a down payment for the loan. Opting for a personal loan if you can afford that cost as well, pledging your investments, getting loan against your insurance policy etc. are some ways to liquidate your assets and pay your downpayment. 3. Are there any specific loans available for NRIs? Yes, there are specific loans that are tailored for the requirements of NRIs who wish to build or buy a home in India. 4.What is reverse mortgage? This loan facility allows a senior citizen (above 60 years of age) eligible to apply for a reverse mortgage loan and avail 60% of the value of the......

Words: 4149 - Pages: 17

Marketing Plan Home Loans

...for one or two new products in your own business and/or another business in your country or region with which you are familiar. Title Bank Home Loan Package to two new market segments, First Home Buyers and First time Investors. Word count (from the start of the Introduction section to the end of the Conclusion section):2118 Table of Contents Assignment Topic 3 Title 3 Word count (from the start of the Introduction section to the end of the Conclusion section):2118 3 Executive Summary 4 Background 4 Objectives 5 Marketing Strategy 5 Product and Price 6 Place 7 Promotion 7 First Time Investors 8 First Home Buyer 8 SWOT 8 Internal 8 Strengths 8 Weakness 8 Opportunities 8 Threats 9 External 9 Strengths 9 Weakness 9 Opportunities 9 Threats 9 Sales Volumes, Market Share and Profit. 10 Target 10 Measures 13 Branch 13 Call Centre 13 Internet 13 Dashboard 13 Demonstration of success 13 References 15 Executive Summary This is a marketing plan that provides the details of a three month campaign designed to generate new leads, increase sales and drive up product usage for a Banks home loan product to two new segments. Through the implementation and iterative refocussing of below the line trigger programs along with in house analysis, new target markets have been identified, First time investors and First home buyers. The marketing plan discusses the current marketing situation with background on the market, product, competition and......

Words: 2870 - Pages: 12

Atlanta Home Case

...Atlanta home Case. Overview of AHL. AHL was a mortgage lending and financing company which was established by Alber Fiorini with only his initial investment of $40,000. AHL grew rapidly under Al’s supervision with employees consisting of four telemarketer and eight loan officers communicating via telecommunication to avoid traffic. These telemarketer’s on average should generate one lead per hour and additional leads were rewarded with performance bonus of $10 for each lead produced along with the hourly wage. AHL didn’t track the actual electronic link to processor’s file before submission instead Al monitored loan officers’ application through the credit inquiries requested for each application. At closing the deal brokers’ check would be mailed to AHL’s office or money would be directly wired to the AHL’s general account. He trusted some employees to run his business when he returned to school to earn his MBA. He had time constraint to find a reliable and trustworthy employee to run the business before he was headed to California. Problems and Controls Joe Anastasia was former loan officer in AHL for 2 months before he was made a partner with a verbal agreement to share equal profit and given Joe investments $8400 in AHL. As noted in the case that Al had short period of time to find someone professional to run the business so when Joe’s resume stated his personality as “dependable and honest” and he had work experience is mortgage lending firm and he was doing a......

Words: 1043 - Pages: 5

Atlanta Home Loan

...Short Summary Atlanta Home Loan April 2002 - Al formed Atlanta Home Loan (AHL), a mortgage lending and financing company, in Atlanta, Georgia - Initial investment of $40,000 - Operated the company from his home Summer 2002 - Company grew rapidly - 4 telemarketers and 8 loan officers who all worked from their homes - Established banking relationships which allowed clients to borrow at wholesale rates - Rates varied according to client FICO scores The Company - Leads were bought from list brokers - Telemarketers called people on the lead lists to assess their interest in refinancing - The lists were then passed on Al who distributed them to the loan officers - Loan officers helped with the applications and ordered an appraisal and credit report - Admitted for EMBA in California, Al had several options for AHL - As the company was appraised for $600,000 and was continuing to grow, he decided to find someone to operate the business in his absence Back to School - June 2002 A Partner- July 2002 - Impressed by Joe's sales ability and being people oriented, the two reached a verbal partnership agreement - Joe would invest $8,400 and be entitled to half of the profits - Al soon found out Joe was irresponsible and terminated the agreement while appointing a new manager that lasted 3 days prior to rehiring Joe A New Partner and licensing agreement - Sept 2002 - As Joe neglected his responsibilities once again, Wilbur, an acquaintance of Joe, was then hired and given the......

Words: 417 - Pages: 2

Atlanta Home Loan

...Group Case # 2 Student Name: Pardeep Kaur Student ID: 300586082 Student Name: Course: Advanced Auditing, ACCT 742 Bud's Big Blue Manufacturing Accounts Receivable Confirmations List the four factors auditors should consider when evaluating the results of confirmation procedures: External confirmations are direct written response from third parties, addressed directly to auditors. External confirmations are obtained to satisify the existenance, accuracy, allocation, and cutoff objectives. It is important that the auditor keeps control on the procedures to get unbiased results. Confirmations should be tailored designed to meet the specific objects of a particular audit engagement and auditor should consider all the factors which can affect the responses. Followings are the four factors auditor should keep in mind while evaluating the external confirmations to arrive at the conclusion that responses received provide sufficent appropriate audit evidence regarding the assertion being audited: The reliability of confirmations: The auditor has to understand the reliability of the responses because even though the responses are obtained from the external sources, circumstances may affect the reliability. Responses may carry some risks of interception, frauds, and modifications. Information obtained may be not from authentic sources. The nature of any exceptions, including any implications and if any restrictions are imposed by the client over or......

Words: 1599 - Pages: 7

Atlanta Home Loan

...the controls that Al Fiorini used to control his business both before and after he went back to school. Classify each control as a results, control, or personnel/cultural type of control. Action control Before he went back to school i. Al monitored the activities of his loan officers by tracking the number of credit inquiries each requested. (Merchant, pg.23) ii. Al closely monitored the loan application/lead ratio depending on the skill of the loan officer. (Merchant, pg.23) iii. Al refused Wilbur’s request to have signing authority on company checks written against AHL’s main bank account. However, as a sign of good faith, he left 4 blank checks (only to be cashed with his permission) with Letitia, the office manager, whom Al trusted. (Merchant, pg. 24) After he went back to school i. Al was no longer managing the day to day operations of the company but continued to monitor AHL’s operations closely. Daily, or as soon as the information was available, Al tracked the employee head count, number of leads, credit inquiries, loan applications, funded expenses and bank activity. (Merchant, pg.25) ii. Al was also on the phone 3-4 hours per day talking with employees, and, particularly, loan officers. He thought that this would allow him to monitor the employees’ emotional states, one that Al thought would be an important leading indicator of forthcoming company performance. (Merchant, pg.25) iii. Al also had the company mail forwarded to his California......

Words: 1471 - Pages: 6

Atlanta Home Loan

...MANC_C03.qxd 08/01/2007 10:42 AM Page 95 Atlanta Home Loan Case Study Atlanta Home Loan THE COMPANY Atlanta Home Loan (hereafter AHL) was a mortgage lending and financing company based in Atlanta, Georgia. Al Fiorini founded the company in April 2002 with an initial investment of about $40,000. He started operating the company from his home. Al had many years of experience in the mortgage lending industry. He had worked for several different companies and had also served a year as president of the Orange County Chapter of the California Association of Mortgage Brokers. Under his direction, AHL’s business grew rapidly in its first quarter of operation. By the summer of 2002, the company consisted of four telemarketers and eight loan officers, all of whom worked from their homes. “Telecommuting” was convenient for the employees because Atlanta was a large city with heavy traffic. Al established banking relationships that allowed AHL clients to borrow money at wholesale rates. The actual loan terms varied depending on the clients’ FICO scores.1 In summer 2003, banks might offer an AHL client with a very high FICO score (over 620) a rate of 6.25–6.75% on a fixed 30-year mortgage. This rate provided the bank with an operating margin of 1.5–2.0%. AHL earned a fee of 1.50% of the loan amount for every loan funded. This provided AHL with an average revenue per loan of $3,200. AHL bought leads from list brokers for $0.20 per name. These lists......

Words: 3536 - Pages: 15

Atlanta Home Loan

...tlanta Home Loan Case Introduction: Atlanta Home Loan was a mortgage lending and financing company based in Atlanta with initial investment of $40,000. It was founded by Albert Fiorini in April 2002 and was operated from his home. He decided to earn an MBA degree from California and left the controls of the company in the hands of his employees. The control systems he used, what went wrong in implementing them and what should Al do now is discussed hereafter. 1)Control systems: a)At the time Al Fiorini was running the company: The company showed rapid growth potential. He performed background checks of employees. Al monitored activities of loan officers by their tracking number. Great goodwill that the company got loans on wholesale rates. b)At the time Al left to earn his MBA: Al used several types of control systems while he was away in California. He used a combination of controls which consisted of action, result and performance controls. Examples of action controls are as follows: Authority to write checks was withheld by Al. Keeping a check on Joe’s attendance and terminating the agreement when he failed to show up. Spent four hours a day talking on the phone to his employees to observe their behavioral patterns.  Centralized decision making (where Al was the central body). All business mails received at his California address. Supervised the loan applications electronically. Observed the progress of ......

Words: 721 - Pages: 3

Case Study: Atlanta Home Loan

...Case Study: Atlanta Home Loan Synopsis of the Situation: Atlanta Home Loan was a mortgage lending and financing company based in Atlanta, Georgia. The company’s founder, Al Fiorini, had many years experience in the mortgage market, and he oversaw eight loan officers and four telemarketers. It was a profitable business with growth potential, so Al decided to find someone to run the business while he went to school to earn his MBA. His first attempts at partnership were unsuccessful, but he eventually found his new partner Wilbur Washington, who had a successful background in the mortgage business. Al began monitoring the company remotely and everyday keeping in touch Wilbur and the other employees. Al and Wilbur first quarreled over the hiring of a new office processor before a much bigger problem came up. Wilbur wrote pre-signed company checks without Al’s permission and they bounced. Even though Al spoke with a bank to transfer funds into a payroll account, to which Wilbur didn’t have access, Wilbur still managed to transfer money back to a general account. Al was frustrated and attempted to limit Wilbur’s power, but he was still able to open an account at another bank. Al called bank to freeze the account but the bank refused. Wilbur gained a signing authority with this second account. Al contacted the police and FBI with little success. Finally, Al asked the Georgia Department of Banking and Finance to withdraw AHL’s mortgage financing license. In the end, Al lost his......

Words: 1236 - Pages: 5

Home Loans

...high skilled worker and they work sometimes on hourly basis also. Hence, their wages have been kept very high as Rs. 8,000/- per month which is as per the Norms. It is presumed that in the first year the capacity utilization will be 65% increasing gradually in the subsequent years reaching to 85% in the 4th year kand expected to be maintained at this in the following years. Interest rate on fixed and working capital has been taken as 18% on an average. D. IMLEMENTATION SCHEDULE: 1. Survey for collection of data in respect of demand, raw material, available of skilled labour and technology etc. –o- 1st . 2. Preparation of project report -1- 2nd . 3. Provisional registration 2nd-3rd . 4. Selection of site 2nd – 3rd . 5. Arrangement of finance/loan. 6. Construction of Building & Workshad 3rd - 5th. 7. Construction of Furnace 5th – 7th. 8. Recruitment of staff & skill labour 7th – 8th. 9. Procurement of Raw material 8th – 9th. 10. Trial production 9th – 10th. 11. Actual production 11th onwards. E. PROCESS OF MANUFACTURE: Process outline: The process of manufacture of glass bangles is highly skilled labour oriented one comprising of the following main operations: 1. Glass Melting 2. Parison Making 3. Bangle spiral / coil forming The glass batch materials like sand, soda ash, lime stone felsfar, borax etc with other additives and coloring materials in a suitable proportion are mixed thoroughly manually and fed into the pot places in pot furnace. The raw material are melted in......

Words: 2226 - Pages: 9