Which of the following situations are likely to result in higher loan defaults?     Mortgages are held by originating institutions in their portfolios.   Borrowers have higher equity in their homes.   Lenders who require documentation of income, liabilities and asset ownership.   Borrowers with low credit scores.

Q: Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of…

A: ExplnationThe lender's response options to a defaulted loan often involve alternatives to…

Q: Common predatory mortgage lending practices include: (select all that apply) Question 4 options:…

A: Predatory mortgage lending practices are unethical tactics used by some lenders to exploit…

Q: A lender is a creditor. Group of answer choices True False

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Define the term amortized but write down its meaning in your own words in reference to amortized…

A: Since there are multiple questions it is only possible to solve the 1st part.

Q: Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of…

A: In the context of a lender's response to a defaulted loan, the options provided in the…

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

A: To market and attract new borrowers for the lenders Assessment of credit history of the borrowers.…

Q: Which is not a metric used by lenders to measure the overall suitability of a loan: 1) Loan to…

A: Loan to value ratio- It is a measure of indebtedness which divides the outstanding debt by the…

Q: balloon-payment mortgage. Why might a financial institution prefer to offer this type of mortgage?

A: Step 1 A balloon payment is a one-time payment that is bigger than usual at the expiration of the…

Q: Mortgage Banks have different cost structures depending on how they originate or acquire mortgage.…

A: Mortgage banks are those banks which are specialised in mortgaging loans. Such banks are involved…

Q: Which of the following is an example of nonrecourse debt? (a) A personal loan secured by collateral…

A: A nonrecourse debt is where the borrower is liable only till its collateral, i.e the lender can only…

Q: VAR models are used banks to assess lenders exposure to default by its bc customers Select one: O…

A: Answer : True

Q: interest rate risk differs between mortgage companies and other financial institutions

A: The mortgage company is a financial firm that gives out its own loans. They use their own funds or…

Q: lenders charge higher interest rates

A: In case of default in loan payments, lender has to incur huge time and expenses for taking action…

Q: S Throughout the process of originating and selling mortgages, mortgage companies face a number of…

A: Down payment is the percentage of the loan that is not paid off at the time of applying for a…

Q: Most lenders do not require collateral for short-term financing.; True or False

A: Collateral refers to something that is pledged in order to repay a loan and which can be forfeited…

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: Consumer loans, by this definition: Some of the most expensive Least borrower-friendly More are…

A: A loan that is given by financial institutions to consumers to fulfil their needs is known as a…

Q: Many types of debt including auto loans, student loans and credit debt are securitized. The…

A: Securitization is the procedure where an issuer designs a marketable financial instruments by…

Q: Explain why it's possible for tranching to make invest ing in a mortgage -backed security more risky…

A: A mortgage-backed security is a type of security which is backed up by mortgage meaning failing to…

Q: Which type of loan can seem to be funded by the mortgage broker wher are not? a) A thrift…

A: A mortgage is a financial arrangement that enables individuals to secure funds for real estate…

Q: w do yo

A: Introduction : A credit history can be understood as a history of a debtor's timely debt repayments.…

Q: What is a mortgage-backed security (MBS)? Why is it difficult for ratings agencies to determine the…

A: Introduction: Mortgage is nothing but an instrument of debt that the creditor is obliged to pay off…

Q: How does high interest rate and setting ceiling on loans (limited credit) compensate for the…

A: Rate of interest is selected as per the credit-score of the borrower compared to the range set by…

Q: Which statement best describes negative debt? debt that does not contribute to building assets debt…

A: Debt is a measure of a company's owned assets.  Debt is a projection of how many assets are owned by…

Q: Explain Negative Amortizing, Constant Payment Mortgage (CPM) Loans?

A: Negative amortizing: Negative amortization is a financial concept that refers to a rise in a…

Q: Building a good credit rating is integral to which of the following? Ability to have access to…

A: Meaning: Credit rating is the measurement of the past performance of a company related to loans and…

Q: How has the credit crisis May have adversely affected many homeowners and mortgage companies?

A: Homeowners insurance policies are defined as the type of an insurance policies, which usually covers…

Q: You will discuss credit from the lenders point of view. What factors do lenders consider when making…

A: A credit score is a numerical representation of a person's creditworthiness and indicates how well…

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: Default risk is generally much greater for commercial mortgage loans than home loans because...

A: In finance default risk refers to that risk in which the borrower will not be able to make the…

Q: Lenders use your credit score? To criticize your financial habits, to punish you for having good…

A: credit score reflect the credit worthiness of the borrower.

Q: D All of the options are correct statements.

A: Insurance refers to the contract between the insurance company and the person in which the fixed…

Q: What does a high credit score mean? The person is considered a higher risk and less likely to pay…

A: A credit score evaluates a person's creditworthiness, or ability to repay debt. It is commonly…

Q: credit cards O Personal Loans O Consolidated Loans O Home Equity Loans O Student Loans use the…

A: A loan is a sum of money that is borrowed from a lender with the expectation that it will be paid…

Q: Why might a wraparound lender provide a wraparound loan at a lower rate than a new first mortgage?

A: Introduction: Wraparound mortgage is a type of loan in which loans are given to borrowers, who is…

Q: Describe the role of mortgage bankers and how they earn profits?

A: Mortgage Bankers are people or intermediaries within financial institutions who helped in the…

Q: Do you think that IFRS 9 may make loans more expensive for borrowers?  Implementation of IFRS 9 will…

A: IFRS 9 follows the expected credit loss model, which regulated the provisioning to be done by the…

Q: If a consumer with a relatively low credit score applied for a loan from your bank, what other…

A: WHAT IS CREDIT CRITERIA- Credit criteria area unit the factors employed by lenders to work out…

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

A: The mortgage broker did not fix a target. Without a clear aim for the year, couriers can transfer…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: Credit risk is a factor for commercial mortgage-backed securities because they are backed by…

A: Option A. Non Recourse Commercial Mortgage backed securities are securities whose payoff depends on…

Q: What is MOST TRUE of DEFAULT RISK on a mortgage loan? Group of answer choices It is always lower…

A: Mortgage loans are secured loan i.e., borrower raise funds for various purposes by promising…

Q: How is your borrowing power affected when you are considered a "high risk"? O There is a good chance…

A: A credit score evaluates a person's creditworthiness, or ability to repay debt. It is commonly…

Q: Which of these is NOT likely to lead to more expensive mortgages?

A: 1. A higher origination loan to value ratio indicates that the lender is taking more risk in case…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.