What contingencies are commonly found in permanent or take-out loan commitments? Why are they used? What happens if they are not met by the developer?

Q: What is meant by a participation loan? What does the lender participate in? Why would a lender want…

A: Participation loans: It is a type of loan in which the lender shares the net operating income of the…

Q: Type of CPM Loan?

A: Introduction: CPM refers to constant payment mortgage, this is nothing but an arrangement…

Q: Determine the indifference price for a property that had an assumable below-market-rate loan?

A: Indifference price is the price at which the investor is indifferent to investing in any of the two…

Q: what is the best provisioning methodology in loan impairement and why?

A: Impairment refers to a reduction in an asset's value. It's similar to depreciation but it's applied…

Q: Define mezzanine loan?

A: Mezzanine funding: Mezzanine funding is a type of funding that has together the characteristics of…

Q: Which are the Borrower’s Rights to Reinstate?

A: The person that takes something from another person with a promise to return back at a specified…

Q: a) Why would a DRC (Depreciated Replacement Cost) valuation not normally be acceptable for secured…

A: When the physical deterioration or any other obsolescence of the assets is deducted from the current…

Q: Why is it appropriate to compare the cost of lease financing with that of debtfinancing?

A: Cost of lease financing is the cost that is bear by the lessee who have owned the right from the…

Q: Define secured basis loan

A: Introduction: Loan is the amount that investors borrow for a given period of time. Farmers pay a set…

Q: Which of the following type of loan is best used for temporary shortfalls of income? a. Secured…

A: Loans can be short term loans or long term loans

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

Q: How do lenders’ and borrowers’ requirements differ? How can financial intermediaries bridge the gap…

A: Lenders' requirements: The minimization of risk This includes the minimization of the risk of…

Q: What is a mini-perm or bullet loan? When and why is this type of loan used?

A: Answer: Project development may be characterized as the process of designing, planning,…

Q: What factors must be considered when deciding whether to refinance a loan after interest rates have…

A: Individuals always consider refinancing the loan when interest rate falls because they think they…

Q: How one determines where to borrow or not? What factor into the decision making process?

A: The act of borrowing money or the sum of money borrowed by an individual, company, government, or…

Q: What is the difference between the assignment of a take-out commitment to the construction lender…

A: Take-out commitment is an agreement between lender and borrower in which lender provides guarantee…

Q: What are the economic benefits of leasing vs ownership of assets?

A: MEANING:- Leasing of Assets - The leasing of assets refers when the owner gives the right to use…

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 would lenders, in general, tend to set loan maturities (not amortization, but when the loan…

A: Loan Maturity: The time period for which a loan is extended is known as the loan period.  The date…

Q: What are the main differences between ARMs and FRMs loans? You need to highlight the differences in…

A: Loan which are provides to the borrower either in Adjusted Rate of Mortgage or Fixed Rate of…

Q: What is unsecured borrowing?

A: Definition:   Liabilities: The claims creditors have over assets or resources of a company are…

Q: Explain Issuance of loans to unworthy entities with examples

A: Issuance of loan to unworthy entities means granting of loans to the entities having a poor…

Q: What does “nonrecourse” financing mean?

A: Nonrecourse financing is a branch of commercial lending. It makes the lender only to repay from the…

Q: Which are the fundamental relationships to know in any loan refinancing decision include at least…

A: Loan refinancing decision involves replacement of an existing debt with a new debt. The intention of…

Q: What is a loan amortization schedule, and what are some ways these schedules are used?

A: Loan Amortization Schedule- An amortization schedule is a table that provides the details of the…

Q: What are the factors that you need to consider in applying for a loan? Why is it important to…

A: When applying for a loan one need to consider several factors at play. Some of them are quantitative…

Q: Why would a lender be willing to make a participation loan?

A: Introduction: Participation loan is a form of loan in which lender is participating in net operating…

Q: What is meant by issue of debentures as collateral Security?

A: Collateral is an asset or property that is given by a borrower to lender to secure the loan.…

Q: Why would an investor-borrower want a participation loan?

A: SOLUTION:- Participation loan: it is a kind of loan in which lender participates in the net…

Q: EXplain the loan structuring?

A: Loan restructuring is designing of loan according to the requirements of the borrower and also to…

Q: What are a few things to consider before you cosign a loan?

A: Cosigning a loan means that in case the borrower is unable to make the payments due on loan the…

Q: What is a compensating balance? What effect does a compensatingbalance requirement have on the…

A:

Q: What are spontaneous sources of short-term financing and unsecured sources of short-term loans

A: The source of funds which are having a zero cost is termed as a spontaneous source of funds. It is…

Q: Describe the concept of non interest bearing on loan.

A: A non-interest bearing loan is a debt for which there is no documented requirement for the borrower…

Q: Explain Negative Amortization Loans with example?

A: Amortization is a way to spread regular payment over time. There is a fixed rate which is paid as…

Q: Substitute of term loan facility is O Financial guarantee O Performance guarantee O Personal…

A: Term loan is a loan which is given by a bank to the borrower for longer periods usually more than a…

Q: Which of the following case would allow the capitalization of  Interest Expense     No Case allows…

A: Interest will be capitalised only when the concerned assets is under preparation for its use in…

Q: Is the following statement is true or false? Amortization is not a payment process.

A: Amortization refers to the process of paying off a debt through scheduled, pre-determined…

Q: in the 5 c's of stracturing a loan approval, what fundamental piece do you think it ignore or fall…

A: Long-term loan:   It's a debt instrument that a company uses to raise money. The collateral is…