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: Default Pay Yourself First Interest occurs when a borrower is unable to meet the obligation of debt…

A: In this case we are given different terms related to finance in general and to use of borrowed money…

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: 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: Commercial loan agreements should contain which of the following: a. representations b. fees and…

A: A commercial loan agreement is an agreement between the borrower and the lender. The lender provides…

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: What is adverse selection?  Why does it predict that lenders will prefer to arrange loans through a…

A: The loan is the funds that a borrower takes from the lender at a certain rate of interest for a…

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

A: Answer : True

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: Assuming the borrower is in no danger of default, under what conditions might a lender be willing to…

A: There can be majorly two possibilities under which a lender may accept a lesser amount than that of…

Q: w do yo

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

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: Explain why a loan officer always looks at a credit report before making a loan. What should you do…

A: The credit report is a way of assessing the credit history of the person seeking loan. By looking at…

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: What does a proper loan structure accomplish for the borrower and the lender?   A. Supports…

A: The term "loan structure" describes the range of options available to a lender when giving credit to…

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: 1. Explain why the formal credit market fails to meet the financial service needs of the poor.

A: Introduction : The formal credit market is the system of financial institutions and services that…

Q: Why aren't short term liabilities included in net new borrowing? A B C Thats messed up, they should…

A: Short-term liabilities are also referred to as current liabilities. These liabilities are settled…

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: Why might a lender prefer a loan with a lower interest rate and a participation?

A: One meaning of loan participation is multiple lenders participating in lending to the same borrower.…

Q: What aspect of FHA loans made them particularly attractive to investment companies such as life…

A: FHA loans can be referred as the loans that are ussually required lesser financial obligations and…

Q: Define the Credit Risk and include in your discussion examples of the Credit Risk and why Financial…

A: A large number of financial transactions take place in the financial system and each transaction…

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: 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: True/False and Explain: Josephine says that firms which obtain debt financing by posting collateral,…

A: The objective of the question is to determine whether the statement made by Josephine is true or…

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: What are the advantages to borrowers and risks to lenders for each?

A: Borrowers are the people who borrows the money for any specific purpose. Borrowers pay some amount…

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…

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.