Guest Speaker Discusses Financial Meltdown and Housing Crisis

Commentary Editor

   The Financial Management Association hosted a guest speaker to discuss the financial crisis and the housing and mortgage business in the Babin Business Center, Oct. 23.

Photo by Linna Jones

Listening - Junior Matthew Hopkins listens to Mark Tiner, the vice president and loan officer of Union Bank, as he talked about the economy, housing markets and other issues about the banking industry. The FMA features an upcoming speaker from the insurance industry in 316 Babin Business Center Oct. 30 at 3 p.m.

   Mark Tiner, vice president and loan officer at Union Bank, spoke to students and faculty about the banking, loans, the housing market, mortgages, banking practices and opportunities.

   Tiner, a University of Arkansas-Monticello alumnus, talked about the debt people accumulate and the mortgage practices at Union Bank. Union Bank goes by very strict guidelines about giving out mortgages.

   The bank’s guidelines include credit score guidelines and minimums, debt income minimums and down payment or equity minimums.

   The bank also works with people who have a business loan or other type of loan to help when a person may be having trouble repaying their loan. The bank may be able to adjust the rate or excuse some of the debt to help the borrower out.

   “If the (borrower) is willing to work with you, I’d like to tell those folks in Washington you come down and deal with what we have to deal with, “ Tiner said. “It’s easy to put a foreclosing sign up in the yard, but I’ll tell you what, once you get that sign in your yard (the house) is hard to sell.”

   Tiner also discussed the housing boom in Northwest Arkansas and the housing bubble. After the housing bubble burst, some banks closed while others felt the severe effects. The banks made loans to some borrowers without financial backing and loans to people wanting to develop in the housing market,which saturated the market.  He also described the drop in the value of homes in Northwest Arkansas.

   “They’re dropping like a one-egg pudding,” Tiner said.

   Tiner encouraged business students to take as many accounting classes as possible. He told the students they need to understand the cash-flow for any situation, to be able to read a tax return, know what it means and whether a loss of income pertains to a paper loss or real loss.

   Tiner described his job as a sales position and how his personality allows him to go out and meet people.

   He said business students going into banking need to understand the accounting aspects and financial statements to make a decision for the bank and customer.

   “I thought (Tiner) did a very good job explaining the recent financial melt down and mortgage and housing business,” said Lou James, dean of the School of Business. “I wish more students had the opportunity to hear his insights. Basically, they would have learned things that aren’t typically covered in the classroom.”

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