REE 3043 Quiz 4 Exam Questions With Correct Answers
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Course
REE 3043
Institution
REE 3043
REE 3043 Quiz 4 Exam Questions With
Correct Answers
Different financing requirements usually are involved in the various phases of a property's life.
Which of the following types of loans is used to finance improvements to the land, such as
sewers, streets and utilities?
A. Bridge loans
B. La...
D. Commercial mortgage documents are longer and more complex. - answer✔A. Similar to
Home Loans, the legal borrower in a Commercial loan is often a single asset corporation
If mortgage rates decline significantly, borrowers may decide to prepay the principal on their
loan even if they face prepayment penalties. One way that lenders protect themselves from
prepayments in such circumstances is to require the borrower to pay the lender the present value
(PV) of losses due to prepayment. This process is referred to as:
A. Curtailment
B. Defeasance
C. Yield-maintenance
D. Lockout - answer✔C. Yield-maintenance
While floating rate mortgage loans may offer lower interest rates to borrowers than comparable
fixed-payment mortgages, floating-rate loans may increase a lender's exposure to which of the
following risks since borrowers may not be able to continue to service the debt if payments on
the loan increase significantly?
A. Liquidity risk
B. Pipeline risk
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