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: 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: Comprehensively discuss the consequences of mortgage defaults coupled with the inherent rights to…
A: Mortgage : is a secured loan that is used to purchase a property against a collateral provided by…
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: 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: What dangers are encountered by mortgagees and unreleased mortgagors when the property is sold…
A: Borrowers mortgage their properties or assets to provide guarantee for repayment of loan to the…
Q: Which of the following statements is not true about mortgages?
A: Mortgages are loans that are used to buy (or maintain) home, land or other types of real estate.
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: Briefly explain mortgage securitization and how it contributed to the economic crisis.
A: Mortgage securitization is the process of converting the loan into investment as purchasing the bond…
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: Explain the influence of the pricing of a mortgage pass-through security?
A: The bond prices of a mortgage pass through security are influenced by: Change in interest rate:…
Q: Mortgages can be insured? Who insures mortgages and why? Can mortgages be sold? If so, who buys…
A: YES, mortgage can be insured. Mortgage insurance is an insurance policy that protects a mortgage…
Q: Explain how a mortgage company’s degree of exposure to interest rate risk differs from that of other…
A: Commercial banks, investment banks, insurance companies, and brokerage firms are the most frequent…
Q: What is a mortgage REIT?
A: Answer: Mortgage REITs invests in mortgage and own land, loan capital to real estate owners for…
Q: b. Is it possible to measure the delivery of a service (e.g. a mortgage application) against a set…
A: SOLUTION- Here are practical techniques and metrics for measuring your Delivery service quality.
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 Residential Mortgage-Related Securities?
A: A types of security which is backed up by single or group of mortgages is known as Mortgage-based…
Q: Which of the following situations are likely to result in higher loan defaults? Mortgages…
A: Loan default implies that borrower is not able to repay debt according to initial predetermined…
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: Which of the following statements about "alternative" sources of funds for commercial mortgages is…
A: The highly structured cash flow of commercial-backed securities is complex and servicers are needed…
Q: Why is it necessary for the bank to have the right to assign a mortgage to a third party (for…
A: Assignment of mortgage to a third party : It is referred to as an agreement in loan obligations are…
Q: What are the various types/methods of mortgages.
A: The various types of mortgages as follows: Fixed rate mortgage: In a fixed rate mortgage, the money…
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: Which of the following are reasons that the actual prepayment rate on a specific mortgage pool…
A: PSA (Public Securities Association Standard Prepayment Model) is referred to as an assumed monthly…
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: Why we need to know the interest, annuities, amortization and mortgage especially in real life?
A: Money charged on a regular basis at a set rate for the use of borrowed funds or to postpone debt…
Q: Which are the Payment Patterns and Security for Mortgages in Pools?
A: When the mortgage loan is given by banks or other financing firms, they sell those loans to mortgage…
Q: What’s the purpose of the mortgage amortization for investors
A: Amortization is dividing of mortgage loans into series of payments which constitute principal and…
Q: What is a mortgage swap certificate?
A: Mortgage refers to debt instrument which is backed by collateral security. It refers to the kind of…
Q: Explain The Mortgage Instrument?
A: The question is based on the concept of mortgage, which is a contract between lender and borrower.
Q: how collateralized mortgage obligations (CMOs) help to alleviate some of the reinvestment and…
A: Mortgage is a type of debt instrument which is generally secured by collateral. A borrower has to…
Q: What are the stages and processes for resolving bad loans? note: include a reference
A: Bad Loans: When a loan made by a bank cannot be recovered, either partially or fully, it is termed a…
Q: Describe the types of risk associated with mortgages.
A: Mortgage-backed securities: A mortgage backed security is an obligation that represents a claim on…
Q: What are mortgage discount points? When does it make sense to pay points on a loan? How can a…
A: Mortgage discount point are all such points which will be reducing the total amount of fees which an…
Q: Given the role of the loan originator in the securitization process of a mortgage loan described in…
A: Securitization: A process of combining various financial assets and then selling this pool to…
Q: Explain The Development of Mortgage-Related Security Pools?
A: Definition : For the granting of a mortgage-backed security, a mortgage pool is a collection of…
Q: Which are the subjects that should always be included in a printed form of mortgage instrument is…
A: Parties name, conditions for repayment, clause for the mortgage, condition of an insurer, mortgagors…
Q: Explain the Interests That Can Be Mortgaged?
A: A mortgage is a loan taken by the borrower either from a bank or any financial institution by…
Q: In what ways is a CMBS structure different from a CMO backed by residential mortgages? Why
A: Mortgage-backed securities: The securities that are secured with mortgage or pool of mortgages are…
Q: What is calculation of Outstanding Mortgage Balance (Repayment of Mortgage)? Please provide…
A: Outstanding Mortgage Balance refers the loan outstanding at any point in time after the loan has…
Q: Discuss the two theories of mortgage default. What are the most important factors that influence the…
A: Mortgage Default In simple term mortgage default which is described as default from the borrower to…
Describe some of the motives and mistakes made by the mortgage
originators?
Step by step
Solved in 4 steps
- Explain Qualified mortgages?How does mortgage securitisation impact the financial market?Discuss the two theories of mortgage default. What are the most important factors that influence the likelihood of default? Discuss the alternatives to default from the lender’s perspective and the incentives lenders face to offer them.