Which of the following correctly describes the exchange between lender and borrower in a typical lending transaction? O The borrower signs the Note in return to receive Mortgage from the lender O The borrower signs the Mortgage in return to receive Deed of Trust from the lender O The borrower signs both Mortgage and Deed of Trust to receive money from the lender O The borrower signs both Note and Mortgage to receive money from the lender

Q: Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of…

A: ExplnationThe lender's response options to a defaulted loan often involve alternatives to…

Q: mortgage loan, the borrower always creates two documents: a note and a mortgage. Please describe the…

A: When granting mortage loan to the borrower lender wants saftey of payments and wants that borrower…

Q: Define the term amortized but write down its meaning in your own words in reference to amortized…

A: Since there are multiple questions it is only possible to solve the 1st part.

Q: Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of…

A: In the context of a lender's response to a defaulted loan, the options provided in the…

Q: understand how the secondary mortgage market functions, remember that the primary function of this…

A: Secondary mortgage market is the market where banks repackage and sell mortgages as securities to…

Q: The (maker/payee) of the note is the one that signed the note and promised to pay at maturity. The…

A: Note refers to the written document issued by the lender for granting a loan to the borrower stating…

Q: How does the payment of a bank loan’s principal and a bond’s par value differ?

A: A bank loan is a common method and process for a business to acquire money and capital for various…

Q: If a note receivable is discounted without recourse   a. the contingent liability may be disclosed…

A: Note Receivable: It is the  asset  which  represent the value of all promissory notes  , that is  a…

Q: Which of the following is an example of nonrecourse debt? (a) A personal loan secured by collateral…

A: A nonrecourse debt is where the borrower is liable only till its collateral, i.e the lender can only…

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: a debtor and a creditor record the same note, respectively, as a: A. note receivable and note…

A: The debtor refers to the person or an entity who owes some amount from another person. The another…

Q: The borrower-mortgagor has the longest periods of equitable and statutory redemption if the…

A: A borrower, also known as a mortgagor, is an individual or  reality that borrows money from a…

Q: 44. Which statement correctly identifies the loan type with its function? O (a) FHA guarantees loans…

A: A loan is defined as the financial term, where the funds or money is given to some other party in…

Q: When a borrower receives the face amount of a discounted note less the discount, the amount received…

A: Explanation: A note is issued by the borrower to the lender indicating a promise to pay the…

Q: An installment note is a liability requiring a series of payments to the lender. True or False True…

A: Introduction: An instalment note is a legal obligation or liability that requires the lender to…

Q: Which of the following bank services involves financial derivatives? Credit services O Transaction…

A: A derivative is an agreement between two or more parties in which the value is determined by an…

Q: Liabilities represent amounts owed to outsiders (creditors) expected to be received from customers…

A: The balance sheet represents the financial position of the business. It records the assets and…

Q: A release clause in a note and deed of trust is activated by a.​the full satisfaction of the terms…

A: The release clause allows for the freeing of all or part of a property from a claim by the creditor…

Q: Briefly describe the process that led from a homeowner purchasinga home to an investor purchasing a…

A: CDO is the security that is issued to several investors backed by the collateral assets held by the…

Q: are in essence an insurance contract against the default of one or more borrowers. O Credit default…

A: An insurance contract is a legal agreement between an insurance company (insurer) and an individual…

Q: What is the formula used to determine the amount repayable to the lender under the Cash Back Option…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Differentiate between mortgage bonds and debentures.

A: Mortgage bonds: Mortgage bonds are type of bonds in which holders have right towards real estate…

Q: Methods/instruments that banks use to hedge the risks pertaining loans

A: Main function of a bank is to accept deposit and then offer loans as both individual and business…

Q: A(n) _________ is a lender, seller, or any other person in whose favor there is a security interest.…

A: Following are the definitions:   Unsecured Creditor: A creditor not having the benefit of security…

Q: A guarantee issued by an FI that obligates the FI to pay if the purchaser of the letter defaults on…

A: Under stock market, there are two different markets working. One is primary market under which the…

Q: What are the main types of mortgages issued by financial institutions ?

A: Mortgage means taking title of the borrowers property in exchange of lending money which is repaid…

Q: Mezzanine Debt is generally collateralized by O A first deed of trust O A high rate of interest O A…

A: Mezzanine debt is a financing instrument which is a hybrid of debt and equity. It has higher risk…

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.