Mortgage servicing is a mode of business concerned with the collection of payments from borrowers and delivering the funds to investors. It involves soothing borrowers into honoring payments to the investment firms where they borrowed and keeps a record of all payments.
The Nationstar Mortgage, a nondescript business venture in Dallas, made tremendous losses of about $520 within a year due to involvement in such transactions. This made most investors afraid of engaging in any form of mortgage investments.
Nationstar did not shut down even after incurring such losses; they still remained in the mortgage business sector. Today, Nationstar has grown and its revenues have increased and profits shot up.
The employees of Nationstar only earn bonuses after successfully processing a mortgage to a client. Although meager gains are obtained from the same, the little revenue adds up and thus, increasing the revenues of Nationstar (Fisher 2013).
Nationstar attributes its success to the employment of various strategies.
These are; it had to create borrower incentives by reducing the principal amount by a certain percentage, as well as, reducing the percentage repayment rates, it also saved costs that would have been incurred calling borrowers who were less than two days late by giving them a grace period.
This led a rise in economies of scale and borrowers extending their repayment period, thus making their mortgage services to be in high demand. This has given Nationstar hope of a bright future as they are bound to make huge profits from increased sales (Fisher 2013).
Ethics is a vital element in research; it governs the extent to which a research is carried out and the nature of the research. Ethics dictates the nature and scope of the strategy to be employed in the research, impounding the researcher on the research methods.
Ethics also governs the behavior of the researcher during the research. Hence, without ethics research can be an open ended venture making it boundless and cumbersome to undertake.
Ethics ensures that at any given time, the researcher concentrates on the core objectives of the research and thus, presents precise findings (McDaniel 2004).
The research above brings out good customer relations as a major ethical issue in business. Nationstar managed to suppress all incumbent obstacles and prosper due to the way it treated its customers.
A great effort was implored to understand the financial concerns of the borrowers and consequently come up with the strategies to recover borrowed capital. The idea of cutting down the principal capital and reducing the repayment rates encouraged more borrowers to repay their mortgages.
This helped the company earn more bonuses and in the process increasing its revenue as a result of successfully negotiated repayments.
In the above research, ethics played a major role in changing the perception of borrowers. Ethics made them see it as a social responsibility to honor their debts and thus, pay banks the borrowed capital.
The repayments enabled the both the mortgage company to benefit as well as the lending bank. This implies that with a proper application of ethics, it is possible to make a population embrace a certain vice which was otherwise regarded as unfriendly by a certain group of people in a society.
Thus, ethics play an important role in influencing people’s minds. However, this can only be achieved through the employment of the most appropriate and friendly strategies that will tend to attract most people towards a certain predetermined goal or objective.
In conclusion, ethics plays a major role not only in achieving organizational objectives, but also in making a certain population embrace a certain culture with the aid of a proper administration of ethical strategies (Singer 2004).
Works Cited
Fisher, Daniel. Fortress Is Betting On Bill Collectors With Mortgage Servicer Nationstar. 2013. Web.
McDaniel, Charlotte. Organizational Ethics: Research and Ethical Environments. New York: McGraw. 2004. Print.
Singer, Peter. Writings on an ethical life. London: Harper Collins Publishers. 2004. Print.