Why is the practice of “holdbacks” used? Who is involved in this practice? How does it affect construction lending?

Q: Why don’t permanent lenders usually provide construction loans to developers? Do construction…

A: Permanent loans: Permanent loans are loans offered by the financial institution for a longer…

Q: what are the Benefits and Costs of Delinquency In the field of lending

A: Whenever a customer does not meet their obligation, a cost aries as the payment on the credit sales…

Q: Which of the following is NOT an asset? Freehold premises Loan to Mamu Bank overdraft Machinery

A: Assets are the things which are owned by the person or company to get the benefits in the current…

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: Are perishable and homogeneous properties alike? How the possibilities of usury should be observed…

A: Introduction:- Making unethical or immoral monetary loans that unfairly advantage the lender is…

Q: leasing

A: Introduction: Leasing is defined as an agreement between two parties known as lessor & lessee…

Q: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

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: explain motivations for leasing assets instead of purchasing them;

A: Introduction: Leasing is a mechanism by which the company may receive some capital assets for use,…

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 does General requirements for loan closing of land development?

A: The last step in financing or buying any land is known as the closing of a loan. The term settlement…

Q: Why should investors be concerned about market rents if they are purchasing a property subject to…

A: Lease is an agreement by which one party agrees to use the property such as land or building of…

Q: What is the significance of the passive activity loss limitation (PAL) rules for real estate…

A: Significance of the passive activity loss limitation (PAL) rule for real estate investors: The…

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

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: 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: What are the features of Rent discount for industrial/warehouse properties that might be added for…

A: The question is based on the concept of rent discounting for real estate.

Q: Why loan support is needed, explain.

A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…

Q: How many ways are there through which Islamic banks transfer ownership of the leased asset to the…

A: An arrangement in which the asset is provided by one party to the user of the asset is termed as a…

Q: What contingencies are commonly found in permanent or take-out loan commitments? Why are they used?…

A: The contingencies found in permanent or take-out loan commitments and their use are as follows: A…

Q: Are tax considerations important in renovation decisions?

A: Introduction: An income property can be well-defined as the property that has been acquired or…

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 are the pre-requisites of having a successful finance leasing?

A: Finance  leasing is the process wherein the finance company owns the asset legally throughout the…

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: give the definition, recognition, measurement and derecognition of "borrowing cost"

A: A uniform group of principles, standards, and procedures that explain the basic financial accounting…

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 two types of current assets are frequently used as security for short-term loans?

A: Short term loans are generally obtained by companies in order to support their temporary business…

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: 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: Define the term truth-in-lending laws? What are its requirements?

A: Answer: The 1968 Truth in Lending Act (TILA) is a federal statute of US aimed at encouraging…

Q: Which is not an example of Asset?     Buildings     Debtors     Prepaid Insurance Expense…

A: Assets are the resources owned by a business. These are used to generate income  for a business and…

Q: Do the fixed assets lose their value even though they continue to function and contribute to the…

A: Meaning of Fixed Assets Fixed assets are those assets which are used in the business with the…

Q: What is the purpose of a bridge loan?

A: Bridge loan is a short term loan taken to finance short term requirements of funds while awaiting…

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: What is Temporary financing?

A: There are various sources of temporary financing which are as follows: a) Commercial paper b) Bank…

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: Explain the concept of asset financing in Islam. What is the concept of Musharakah? How is it…

A: (Answers of first 3 parts) 1.  Islamic finance refers to the banking and financial activities which…

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: How does Leasing offer flexibility and a lower cost when disposing of the asset?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Which of these is not typically a responsibility of a property manager? Maintenance programs O…

A: Property manager is the person who sees the day to day working of the real estate.The responsibility…

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.