Which of the following situations are likely to result in higher loan defaults?     Mortgages are held by originating institutions in their portfolios.   Borrowers have higher equity in their homes.   Lenders who require documentation of income, liabilities and asset ownership.   Borrowers with low credit scores.

Q: What is the status of a lender on collateral if they fail to perfect their security interest? What…

A: A security interest in an asset that cannot be claimed by any other party is called a perfected…

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: balloon-payment mortgage. Why might a financial institution prefer to offer this type of mortgage?

A: Step 1 A balloon payment is a one-time payment that is bigger than usual at the expiration of the…

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: Most lenders do not require collateral for short-term financing.; True or False

A: Collateral refers to something that is pledged in order to repay a loan and which can be forfeited…

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: Consumer loans, by this definition: Some of the most expensive Least borrower-friendly More are…

A: A loan that is given by financial institutions to consumers to fulfil their needs is known as a…

Q: Explain why it's possible for tranching to make invest ing in a mortgage -backed security more risky…

A: A mortgage-backed security is a type of security which is backed up by mortgage meaning failing to…

Q: What are some different methods that can be used for customer returns/bad debt? which way do you…

A: Solution: The customer returns can be accounted through two method: One is directly debiting the…

Q: Banks can hedge the credit risk of their mortgage loans by buying credit default swaps. (Think about…

A: The risk or uncertainty that is present in an investment transaction that the investee will not…

Q: Many investors that purchased the mortgage-backed securities just before the credit crisis believed…

A: The credit crisis was a creation of the banks in various countries, lenders, homeowners, various…

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: Building a good credit rating is integral to which of the following? Ability to have access to…

A: Meaning: Credit rating is the measurement of the past performance of a company related to loans and…

Q: Your company provides credit to customers. Someof these customers default on their loans, with…

A: Discriminant analysis is the analysis which provide the permission to organization in determining…

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

A: Homeowners insurance policies are defined as the type of an insurance policies, which usually covers…

Q: Default risk is generally much greater for commercial mortgage loans than home loans because...

A: In finance default risk refers to that risk in which the borrower will not be able to make the…

Q: How is your borrowing power affected when you are considered a "low risk"? There is a good chance…

A: A low risk individual has a better credit history and higher credit score. This is due to better…

Q: Do you think that IFRS 9 may make loans more expensive for borrowers?  Implementation of IFRS 9 will…

A: IFRS 9 follows the expected credit loss model, which regulated the provisioning to be done by 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: Which of the following is a borrower's right provided by the Mortgage Bankers Association that is…

A: The mortgage bankers association (MBA) is referred to as the national association which mainly…

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: 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: Credit risk is a factor for commercial mortgage-backed securities because they are backed by…

A: Option A. Non Recourse Commercial Mortgage backed securities are securities whose payoff depends on…

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: heir loans in one industry so that they can specialize on that industry and reduce the credit risk…

A: Credit risk means risk of default in payment obligation by borrower.

Q: what are two types of credit

A: "We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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: An advantage financial institutions have over individual household investors is that they are able…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: Which statement best describe subprime loans? a.Loan issued to high-risk borrowers with poor credit…

A: Subprime loans are the types of loans which carries interest rate of more than prime rate. These are…

Q: How does mortgage securitisation impact the financial market?

A: Mortgage securitisation or mortgage backed security is similar to a bond and is made up of a bundle…

Q: the financial institution do to lower these risks

A: The main risk is that interest rates will rise. Therefore, banks have to pay  higher interest rates…

Q: How does a lower credit rating affect borrowers lenders and financial institution? What are the…

A: The credit rating is a measurement of the creditworthiness of the borrower. In the capital market,…

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…

Q: If you were applying for a home mortgage loan today, would a lender viewyour debt-to-assets ratio…

A: Ratio analysis The financial statement of a company are analyzed in order to find profitability,…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.