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3 years ago

Make a list of some typical documentation you would request from a loan applicant and/or the verifications you would perform?

Business

1 answer:

Fudgin [204]3 years ago

3 0

Answer:

a. Items that are important to double check before submitting a loan application to underwriting:

Personal ID Documents
Proof of Income
Personal Credit Bureau Report

b. Things you would be sure to tell a borrower in preparation for closing:

Proof of Property Ownership or Guarantee Pledge
Contact details of 2-3 relatives or guarantors

c. Calculations that are typically used during the course of a mortgage loan transaction:

Loan to Value ratio
Debt to Income ratio
House expense ratio

Explanation:

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A student looking at the timeline for a student loan on page 60 of the text makes the following observation: The text states th

Brrunno [24]

Answer: A. incorrect because part of each payment is to principal and to interest. Therefore, only a portion of the payment goes to interest, so the full amount should not be included when computing the rate of interest paid.

Explanation:

When paying back a loan, there are two components to the periodic interest payment. The first component is the interest payment. This is the payment to compensate the borrower for loaning out the money and is based on the interest rate and the principal left to be repaid.

The second component goes towards repaying the principal of the loan which in this case is $10,000. When computing the periodic interest rate therefore, the entire amount paid per period should not be used as it would inflate the interest rate.

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3 years ago

2. When the economy is in a recession, the Federal Reserve usually cuts interest rates. Why would the federal government do this

Airida [17]

The purpose of the Federal Reserve cutting interest rates during a recession is to encourage borrowing (borrowing becomes cheaper) and in this way especially for companies they may spend more money then on improvements, new products etc so the economy theoretically will be stimulated to counteract the recession.

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3 years ago

Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds at par with the intent and ability to hold the bonds until the

VashaNatasha [74]

Answer:

Since Bloom plans to sell the bonds, it must record the entire loss as credit loss (loss on sale of bonds)

Dr Other than temporary impairment loss 400,000

Cr Discount on bond investment - Taylor bonds 400,000

Credits losses must be recognized as a loss in earnings in the income statement.

Journal entry to record credit loss:

Dr Other than temporary impairment loss 250,000

Cr Discount on bond investment - Taylor bonds 250,000

Journal entry to record non-credit loss:

Dr Other than temporary impairment loss 150,000

Cr Fair value adjustment - Taylor bonds 150,000

Non-credit losses must be recognized as part of other comprehensive income/loss and must be disclosed separately than credit losses. They must be reported in the balance sheet (they lower retained earnings directly), not the income statement.

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3 years ago

At Halsted Medical Products Corp., all assembly workers must wear specialized gear to prevent possible injuries from minute part

Pavlova-9 [17]

Answer:

b. Feedforward control

Explanation:

Feedforward control is a form of proactive control that includes measures that pertain to prevent certain consequences and safety hazards. This company wants to prevent their employees form getting injured from particles during manufacturing. So, this is an example of feedforward control, that aims to prevent, not react.

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3 years ago

Batman parked the Batmobile himself and kept the bat keys. There was no attendant at the lot. Two hours later, Batman left the r

kupik [55]

Answer:

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3 years ago