Explain The Mortgage Instrument?

Q: How can mechanics’ liens achieve priority over first mortgages that were recorded prior to the…

A: Mechanic’s liens get the priority over the first mortgages when they depend on the state recording…

Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?

A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…

Q: Explain in general terms how the portions of loan payments going to principal and interest change…

A: Installment loans gradually pay down the loan principal while the payments remain the same .…

Q: understand how the secondary mortgage market functions, remember that the primary function of this…

A: Secondary mortgage market is the market where banks repackage and sell mortgages as securities to…

Q: Please explain the risks the buyer of a loan participation is exposed to

A: There are many risks involved in loan and it is very risky to give loans because of default on loan…

Q: Consider the mortgage term PITI. What do the last two letters stand for? title insurance taxable…

A: Many mortgage lenders estimate PITI for the insured person before they decide whether he qualifies…

Q: Explain the purchase-money mortgage?

A: Purchase-money mortgage: A purchase-money mortgage is a loan delivered to the debtor by the vendor…

Q: Define mortgage securitisation , with a relevent example?

A: Mortgage is a loan agreement between the borrower and the lender, in which the property or real…

Q: Which are the Borrower’s Rights to Reinstate?

A: The person that takes something from another person with a promise to return back at a specified…

Q: What is a mortgage-related security?

A: Mortgage-related security: A mortgage-related security is a kind of asset-backed security which is…

Q: For a creditor; how is a loan impairment recorded?

A: Creditors:   They are the outside entities to whom the business owes money for any product or a…

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: Describe some of the motives and mistakes made by the mortgage securitizers?

A: To market as well as attract borrowers for lenders.Evaluation of the borrower's credit…

Q: What is a mortgage payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: Explain Mortgage-Equity Approach?

A: Mortgage-Equity Approach: It has advanced for quite a while. It is a numerical technique, in view of…

Q: What is a mortgage REIT?

A: Answer: Mortgage REITs invests in mortgage and own land, loan capital to real estate owners for…

Q: What is private mortgage insurance?  How does it work to protect a lender from risk?   What are the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain the lending methodology

A: Loaning (otherwise called "financing") happens when somebody permits someone else to get something.…

Q: Explain the difference between conventional mortgages, reverse mortgages, and second mortgages.

A: Difference between Conventional mortgage ,reverse mortgage , second mortgage Mortgage Mortgage is a…

Q: For what items may a lender require escrow accounts from a borrower?

A: Escrow account is the third party account in which securities or assets are kept until the…

Q: Describe the obligations of long term liabilities.

A: Long-term liabilities: Long-term liabilities are obligations that the company needs to pay after at…

Q: Give an example of a real estate mortgage and chattel mortgage. What are the obligations being…

A: The term mortgage refers to the loan taken by an individual for which the individual has put some…

Q: Explain the term Mortgage-Equity Capitalization?

A: The mortgage equity capitalization technique is not a technique which is that commonly used. However…

Q: When one examines a REIT investment, why it is important to consider the terms of the company’s…

A: REIT stands for Real Estate Investment Trust. It manages and operates properties that generate gain…

Q: What does “assignment” mean and why would a lender want to assign a mortgage loan?

A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…

Q: How does credit risk affect insurance companies

A: Credit risks affect insurance companies in a tangible and often direct manner.

Q: Explain Transfer of Property or a Beneficial Interest in Borrower?

A: The question is based on the agreement of Mortgage loan in real estate deal.

Q: Explain Restructuring the Mortgage Loan?

A: The mortgage loan restructuring option is generally considered by homeowners so that the loan…

Q: Why is a mortgage a good debt?

A: Mortgage is typical loan given for purchase of home and ownership is reserved with financial…

Q: Differentiate contract of pledge from contract of mortgage.

A: Contract of Pledge is used for Movable Assets and contract of Mortgage is used for Immovable Assets.…

Q: How can be Mortgage Transfer to a New Owner?

A: Assumable mortgage refers when a mortgaged property is sold along with the loan. Buyer in this case,…

Q: Explain the Federal National Mortgage Association (FNMA)?

A: The Federal National Mortgage Association (Fannie Mae) is a federal corporation that guarantees…

Q: Define Warranty Modeling?

A: It is necessary to ascertain entire lifecycle cost of a product, and this includes the costs related…

Q: Which are the Minimum Mortgage Requirements?

A: Meaning of mortgage: Mortgage is nothing but an instrument of debt that the creditor is obliged to…

Q: Discuss in brief the types of collateralized debt Obligation. Please explain in details.

A: Solution-  Collateral Debt Obligation [CDO] is a sophisticated project financing outcome that's also…

Q: Define asset retirement obligations (AROs).

A:

Q: Explain GPM Mortgage Loans and Effective Borrowing Costs

A: Graduated-payment contract (GPM) loans: It may be a sort of fixed-rate mortgage in which…

Q: Explain Assumption of Mortgage?

A: An individual can obtain loan by mortgaging its property to the lender. The property is said to be…

Q: What are the main types of mortgages issued by financial institutions ?

A: Mortgage means taking title of the borrowers property in exchange of lending money which is repaid…