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: What is the major difference between a CMO and the other types of mortgage-related securities?
A: Mortgage-backed securities are special investment proposals generated by financial intermediaries to…
Q: What interest rate is the bank required by law to report to potential borrowers? (I
A: Effective annual interest rate is also called annual rate of return . It is the real return…
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: Explain in detail and with examples why the functioning of mortgage institutions could be considered…
A: Mortgage institutions are the companies that are mainly into the production of mortgage loans, be it…
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: What would these securities be called and what does the Bank need to do to ensure the loan monies…
A: Loans refer to the agreement between the borrower and the bank or financial institution for…
Q: Write a persuasive statement either supporting or opposing a bank's right to assign a mortgage to a…
A: A mortgage payment usually consists of four main components: principle, interest, taxes, and…
Q: Analyse what exposure banking institutions had to the subprime mortgage crisis and how MBSs…
A: Funds- The total amount of loanable funds in an economy is the sum of all the money saved and…
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: Discuss in detail about the Loan securitization as a tool for managing risks by banks. Discuss about…
A: Securitization : It is a risk management tool used to reduce an risk that is particular to some…
Q: List two types of restrictions long-term creditors often put oncompanies when granting them a loan.…
A: External confirmation External confirmation can be defined as a substantive audit procedure used by…
Q: Explain further the effects/impacts of default on asset-backed security (ABS) to the financial…
A: The question is based on the concept of asset-backed security (ABS). ABS is a financial instrument…
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: residential mortgages and those backed by commercial mortgages
A: It’s easy to work out that if you’re applying for a mortgage for your business, you must be applying…
Q: Methods/instruments that banks use to hedge the risks pertaining loans
A: Main function of a bank is to accept deposit and then offer loans as both individual and business…
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: Briefly explain mortgage securitization and how itcontributed to the global economic crisis.
A: Mortgage securitization is nothing but combining the characteristics of same mortgages into a single…
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: What are the main types of mortgages issued by financial institutions ?
A: Mortgage means taking title of the borrowers property in exchange of lending money which is repaid…
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: 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: Does collateral reduces moral hazard by borrowers? Why?
A: Introduction: A collateral asset is an asset that a lender accepts as payment for a loan. Depending…
Q: True or false? Interest received on loans made to borrowers is an example of an investing activity.
A: The investing activities of the cash flow statement record the amount incurred for purchasing the…
Q: What is the difference between a mortgage and amortgage-backed security?
A: Meaning of Mortgage Mortgage defines a loan against an asset or valuable object. Under Mortgage the…
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: Name the principal types of mortgage-related securities. What are the differences between them?
A: Principle type mortgage-related securities are those securities that are based on the mortgage as…
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: Aside from changes in the general level of interest rates, what is the primary source of risk faced…
A: Mortgage based securities are created by pool of mortgage based loans. Mortgage based securities are…
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 securitizers?
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- 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.how collateralized mortgage obligations (CMOs) help to alleviate some of the reinvestment and prepayment risk for investors?Explain how a mortgage company’s degree of exposure to interest rate risk differs from that of other financial institutions.
- In what ways is a CMBS structure different from a CMO backed by residential mortgages? WhyExplain in detail and with examples why the functioning of mortgage institutions could be considered arguable as partial fulfillment of the debt markets.Why is it necessary for the bank to have the right to assign a mortgage to a third party (for example, a third-party financial institution).