Commercial and residential mortgage underwriting differ in several important ways. Which of the following is not one of those differences?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Commercial and residential mortgage underwriting differ in several important ways. Which of
the following is not one of those differences?
Residential loans are much more standardized than commercial loans.
O Commercial loans are typically amortized over a shorter period than residential loans.
O Prepayments penalties are very common for commercial loans, but not for residential loans.
O Lock-out provisions prohibit prepayment of residential mortgages during early years of the loan, but do
not exist for commercial loans.
The ability of the borrower to repay the loan is paramount in residential underwriting, but it is much less
important in commercial underwriting.
Transcribed Image Text:Commercial and residential mortgage underwriting differ in several important ways. Which of the following is not one of those differences? Residential loans are much more standardized than commercial loans. O Commercial loans are typically amortized over a shorter period than residential loans. O Prepayments penalties are very common for commercial loans, but not for residential loans. O Lock-out provisions prohibit prepayment of residential mortgages during early years of the loan, but do not exist for commercial loans. The ability of the borrower to repay the loan is paramount in residential underwriting, but it is much less important in commercial underwriting.
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