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.

Discharge for qualified principal residence indebtedness (QPRI) is:  Not likely to trigger cancellation of debt income.  When the bank takes the home from the borrower to satisfy the mortgage debt.  Available for a second home.  A restructuring of a loan that allows the borrower to retain ownership of their home.

how collateralized mortgage obligations (CMOs) help to alleviate some of the reinvestment and prepayment risk for investors?

Explain the 5 C’s that creditors look for in borrowers. Which ones are the most important?  Which ones do not depend on the individual borrower?

What is the debt credit rate for Montgomery, AL? and does is has impacts that must be paid to lure initial investors?

Which type of information asymmetry explains why bad credit risks are more likely to seek bank loans?   A. Moral hazard   B. Adverse selection   C. Principal-agent problem

Which of the following is not a reason for the issuance of long-term liabilities? Debt financing dilutes ownership interest. Debt may be the only available source of funds. Debt financing may have a lower cost. Debt financing offers an income tax advantage.

How is your borrowing power affected when you are considered a "high risk"? There is a good chance that you will receive better loan terms and low interest rates. You might not qualify for a loan to buy a home, car, etc. You will pay lower interest rates. None of the above.

What are the stages and processes for resolving bad loans? note: include a reference

How does mortgage securitisation impact the financial market?