How has the credit crisis May have adversely affected many homeowners and mortgage companies?

Q: What does default mean? Does it occur only when borrowers fail to make scheduled loan payments?

A: Default is the risk involved in providing the mortgage loan. Default indicates the incapability of…

Q: Why some entrepreneurs are hesitant to avail of commercial bank loans? (b) Why some of them resort…

A: To start a business, some amount of capital is needed beyond the owner's capital. Commercial…

Q: What would happen to the standard of living if people lost faith in the safety of financial…

A: Financial institution is the institution which involve the financial activities such as investment,…

Q: What type of loan/s these banks offer? Explain how they use this type of loan among their clients

A: Loans are the debt form that is incurred by an individual or entity. The lender of the loan is…

Q: As a result of the recent mortgage crisis, many banks reported record losses to their mortgage…

A: 1.

Q: The widely publicized subprime lending crisis was NOT caused by

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: business

A: Company will windup at the end when borrowing are excessive and at that time all the assets and…

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: Why were credit unions less affected by the sharp increase in interest rates in the late 1970s and…

A: A commercial bank is a financial institution that accepts deposits, provides checking account…

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: Why might customers of big banks be reluctant to moveto a credit union?

A: Introduction: A credit union is a financial mutual institution which is owned and operated for its…

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: 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: What are the pros and cons of U.S. savings bonds?

A: We are allowed to answer one question at a time. Since you have not mentioned which answer you are…

Q: Would you not agree that the financial institutions and federal authorities are equally to blame for…

A: Lending to subprime borrowers is more likely to default than lending to prime borrowers. In the…

Q: financial impact of lily taking out this payday loan? how do borrowers get trapped in an inescapable…

A: Payday loans are non-secured ash advances for small sums of money with extremely high-interest rates…

Q: Why should you and should not sign a personal guarantee for a business loan?

A: The personal guarantee for a business loan refers to the assurance by the company or a business…

Q: Why are some entrepreneurs hesitant to avail of commercial bank loans? Why do some of them resort to…

A: Commercial bank is a type of bank which accepts deposits from public and advance deposits to public…

Q: How does credit risk affect insurance companies

A: Credit risks affect insurance companies in a tangible and often direct manner.

Q: Why are credits and debits different for banks compared for personal finance usage?

A: In personal account, all expenses, assets, and losses will be debited. All incomes, liabilities, and…

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: ich of the following was part of the U.S. government’s response to the credit crisis? a) Troubled…

A: Basic Concepts of Accounts and business

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: 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…

Q: nt stud

A: Introduction : In simple words, student loans refers to the amount borrowed by individuals to…

Q: Why did actual home buyers/ borrowers start defaulting in the financial crisis of 2007/2008?

A: Financial crisis: A financial crisis is any of a number of scenarios in which some financial assets…

Q: Explain the 5 C’s that creditors look for in borrowers. Which ones are the most important?  Which…

A: A borrower is an individual or an institution that borrows money or loan from the lender for a…

Q: Explain the disadvantages and dangers of Home Equity Loans.

A: The disadvantages of home equity loans:Higher rate of interest: The interest rates are typically…

Q: hat may a person lose in addition to the goods if she or he fails to keep up the payments on a…

A: A loan is referred as the amount provided to one party to another where the principal amount with…

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: A person has a poor credit score due mainly to the amount of debt on credit cards and installment…

A: Credit score represents the credit worthiness of the customer who have the credit card. There…

Q: What would happen to a country standard of living if people lost faith in the safety of the…

A: Introduction : In simple words, financial institutions refers to the entities such as banks and…

Q: What may a person lose in addition to the good if he fails to keep up the payment on a personal…

A: Personal loan : The personal loan can be understood as the sum of funds for a number of uses that…

Q: Why might the cost of a mortgage loan be greater than the cost of using unsecured corporate debt to…

A: A mortgage shall be a credit the borrower utilizes to buy or retain a house and accepts to repay…