F3 Commercial and residential mortgage underwriting differ in several important ways. Which ofthe following is not one of those differences?Residential loans are much more standardized than commercial loans.O Commercial loans are typically amortized over a shorter period than residential loans.O Prepayments penalties are very common for commercial loans, but not for residential loans.O Lock-out provisions prohibit prepayment of residential mortgages during early years of the loan, but donot exist for commercial loans.The ability of the borrower to repay the loan is paramount in residential underwriting, but it is much lessimportant in commercial underwriting.

Commercial mortgage underwriting is for business purposes, whereas residential mortgage underwriting…

Answered: Commercial and residential mortgage…

Commercial and residential mortgage underwriting differ in several important ways. Which of the following is not one of those differences?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 81.1C

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Question

Commercial and residential mortgage underwriting differ in several important ways. Which of
the following is not one of those differences?
Residential loans are much more standardized than commercial loans.
O Commercial loans are typically amortized over a shorter period than residential loans.
O Prepayments penalties are very common for commercial loans, but not for residential loans.
O Lock-out provisions prohibit prepayment of residential mortgages during early years of the loan, but do
not exist for commercial loans.
The ability of the borrower to repay the loan is paramount in residential underwriting, but it is much less
important in commercial underwriting.

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