Question: Describe what a qualified mortgage is and explain the elements
Describe what a ‘qualified mortgage’ is and explain the elements of the ability to repay rule.
Answer to relevant QuestionsWhat are the five Cs of credit? Discuss their importance in credit analysis. Describe the five Cs of bad credit introduced in the text. Explain what it means to “perfect the bank’s security interest” in collateral. When lending to a small business owner who is an owner/ manager, what methods might the bank use to perfect its interest in the collateral ...Using the example in the text, develop a list of questions that a loan officer should ask Marcus Wade to gain a better understanding of the risks involved in lending to Wade’s Office Furniture. Explain how it is possible for a firm to report rising NI each year yet continue to need more working capital financing from a bank. What are the major expenses associated with making consumer loans? What is the average size of consumer installment loans at small banks? How does loan size affect loan rates that banks charge on consumer loans?
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