Borrowers Study guides, Revision notes & Summaries

Chapter 03 Financial Services: Finance Companies     
True / False Questions
  1. Finance companies differ from banks in that they do not accept deposits. 
TRUE   2. Finance companies have been among the slowest growing FI groups in recent years. 
FALSE   3. General Electric Capital Corporation (GECC) provides services to more than 15 million businesses and consumer is Asia alone. 
TRUE   4. In 2008, GE Capital Corporation accounted for approximately 50 percent...

Describe the three phases of money laundering. - Correct answer-• Placement is the physical disposal of cash or other assets derived from criminal activity. • Layering is the separation of illicit proceeds from their source by layers of financial transactions intended to conceal the origin of the proceeds. • Integration is supplying apparent legitimacy to illicit wealth through the re‐entry of the funds into the economy in what appears to be normal business or personal transactio...

WGU D076 Objective Assessment V1 (Latest 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| Grade A Q: What does high inventory turnover relative to the industry and competitors indicate? Answer: The firm does not hold enough inventory and is making its customers wait longer to receive their purchased goods. Q: What is the ratio that tells you on average how long it takes for a firm to collect accounts receivable? Answer: Average c...

Test Bank for The Economics Of Money Banking And Financial Markets 13th Global Edition Frederic Mishkin Latest 2023 Complete Guide A+ of Money, Banking and Financial Markets, 13e (Mishkin) Chapter 1 Why Study Money, Banking, and Financial Markets? 1.1 Why Study Financial Markets? 1) Financial markets promote economic efficiency by A) channeling funds from investors to savers. B) creating inflation. C) channeling funds from savers to investors. D) reducing investment. Answer: C Question...

REE 4202- Exam 2 Sirmans Qs&As Borrower Qualifications include: - ANS-1. determining maximum loan amount 2. estimating settlement requirements and costs 3. analyzing credit history 4. calculating effective income 5. estimating monthly housing expense 6. assessing ability to repay mortgages and other liabilities in a timely fashion Credit Scoring - ANS--used to assess the creditworthiness of a borrower -best known company FICO (Fair Isaac and Company) -cutoff score for Frannie and Fr...

A __________ is a permanent change in one or more of the terms of a borrower's loan. Loan Qualification Loan Modification Loan Approval Loan Origination - ANS IS Loan Modification What time period must borrowers have in job history with the same employer to qualify? 2 months 6 months 1 year 2 years - ANS IS 2 years Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower in taking a mortgage that carries high fees, a high interest rate, strips the borro...

mortgage Broker - Answer- Functions as a middleman between the borrower and the lender, negotiating, selling or arranging loans to be delivered to large investors Mortgage Banker - Answer- Provide their own funds for the purpose of providing mortgage financing Correspondent Lender - Answer- Smaller in scale then mortgage bankers or brokers, these lenders typically extended loans with their own funds at their own risk Origination - Answer- The process of creating a new mortgage loan U...

A Notary Signing Agent has been providing signing services with no incidents for over 10 years without having undergone a background screening. Therefore he or she: - Must still obtain and pass a background screening A Notary Signing Agent with nearly 10 years experience has reviewed and is completely familiar with all the documents in a loan package. When meeting with the borrower, the Notary Signing Agent may now: - Present and state the general purpose of each document and how it must b...

to operate, any business must have assets; to acquire assets, the business must raise - -capital capital comes in two forms - -risk and inflation __ and __ are long term debt contracts under which a borrower agrees to make a series of interest and principal payments on specific dates to the lender - -term loans and bonds a term loan is generally provided by a - -single lender bond is typically offered to the - -public and sold to many investors bonds issues by the federal government - -tre...

Which law ensures lenders use an annual percentage rate (APR) so that the borrowers have the information they need to make informed comparisons? Correct Answer: Regulation Z Which law ensures that some borrowers have the right of rescission for three business days after a loan contract is signed? Correct Answer: Regulation Z While it is unlawful to consider race when underwriting a loan, what federal legislation requires that this information be included on the loan application? Correct ...

_____ is the consummation of a contractual real estate transaction in which all appropriate documents are signed, and the mortgage loan proceeds are disbursed by the lender. - Answer- Closing The primary determinants of real estate values are supply and _____. - Answer- Demand _____ is something of value that can be pledged as security for repayment of a loan. - Answer- Collateral Servicing includes which of the following activities? - Answer- Maintaining records of payment The monet...

Loan-to-Value Ratio (LTV) - correct answer The percentage of the lesser of the appraised value or sales price that the lender will lend. ex: If a borrower is approved for an 80% loan, it means that the lender will loan up to 80% of the sales price or appraised value, whichever is lower. Package Mortgage - correct answer Includes both real and personal property ( fixtures and furnishings) Blanket Mortgage - correct answer Covers more than one piece of property. Wraparound Mortgage - c...