1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
drek231 [11]
3 years ago
13

Traditional home mortgage underwriting is said to rest on three elements, the "three C's." The housing expense ratio is one tool

that lenders will use to address concerns associated with which of the "three C's"?
a) collateral
b) creditworthiness
c) capacity
d) capability
Business
1 answer:
Tresset [83]3 years ago
3 0

Answer:

The three C's are Collateral, Creditworthiness, Capacity

Explanation:

The underwriters take a risk to loan you for the mortgage for this purpose they need to verify your paperwork so as to determine your eligibility to get a mortgage, which is based on;

  1. Creditworthiness: It is your credit score and your account and payment history. It also includes your previous loans and purchases.
  2. Capacity: It is a check on your ability to repay the loan. It is basically a debt-to-income ratio. The lender goes through your salary, income, expenditure and debts to confirm that you can actually repay the loan.
  3. Collateral: Literally it means an asset of the borrower kept by the lender as a security of safe return of the loan. in case of house mortgage collateral is mostly 20% down payment of the mortgage being received. If the borrower fails to repay the loan the lender seizes collateral to recover the loss.
You might be interested in
Identify something you buy or sell that could be bought or sold using an auction. How would you run the auction? Do a benefit-co
denis-greek [22]

There are various things that could be bought or sold by an auction such as Collectibles and art, antiques, real estate sporting goods etc.

There are several ways to conduct an auction, but the first-price auction and second-price sealed-bid auctions are the most common. In first-price auctions, the person whose bid is highest than the base offer will win the auction. The highest bidder in a sealed-bid auction with a second price pays for the second-highest bid. If there are several bidders on a piece of real estate, for instance, the property will go to the highest bidder, but in this situation, the highest bidder will only have to pay the price of the second-highest bid.

The cost-benefit analysis indicates that auctions will aid in the sale of the rare products at a price over its minimum worth, based on the cost-benefit analysis. The best profit will therefore be made in this situation, but the consumer surplus is still positive.

Learn more about auction here:

brainly.com/question/14836880

#SPJ4

6 0
1 year ago
A tax that imposes a small excess burden relative to the tax revenue that it raises is.
stiv31 [10]

A tax that imposes a small excess burden relative to the tax revenue that it raises is an <u>efficient tax.</u>

<h3><u>What Exactly Is Tax Efficiency?</u></h3>

The least amount of taxes that are legally required to be paid by a person or a corporation is known as tax efficiency. When a financial choice results in a lower tax bill than a competing financial structure that serves the same purpose, the choice is said to be more tax-efficient.

<u>Tax-Advantaged Mutual Fund</u>

Another approach to lower tax obligations is to invest in a tax-efficient mutual fund, particularly for taxpayers without access to a tax-deferred or tax-free account. In comparison to other mutual funds, a tax-efficient mutual fund is taxed at a reduced rate. Compared to the standard mutual fund, these funds often produce lower rates of returns through dividends or capital gains.

Mutual funds that provide little to no interest income or dividends include small-cap stock funds and passively managed ones, including exchange-traded funds (ETFs) and index funds.

Learn more about the efficient market with the help of the given link:

brainly.com/question/22597940

#SPJ4

7 0
2 years ago
Black Horse deposits $2,000 in cash in his checking account at Bank for the People of West Dakota. The reserve requirement is 25
AfilCa [17]

Answer:

d. $8,000

Explanation:

Reserve requirement = 25% = 0.25

The money multiplier = 1 /Required reserve

The money multiplier = 1/0.25

The money multiplier = 4

The initial deposits = $2,000

The maximum possible expansion of deposits = Initial deposits * The money multiplier  = $2,000 * 4 = $8,000. Thus, the maximum expansion of the money supply possible from the original deposit is $8,000

6 0
2 years ago
Please help me with this question
Katen [24]

Answer:

$395.

Explanation:

interest = Principal×rate of interest×time

Principal = $15800

Rate       =0.1

Time      = 3/12

interest = $15800×0.1×3/12

           =

7 0
3 years ago
A family spends $56,000 a year for living
vovangra [49]

If a  family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, the amount that the family need for their annual living expenses after four years is $68,068.35.

<h3>Annual living expenses</h3>

Using this formula

Amount=Amount spent× (1+ rate)^ Number of years

Let plug in the formula

Amount=$56,000× (1+0.05)^4

Amount=$56,000× (1.05)^4

Amount=$68,068.35

Therefore If a  family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, the amount that the family need for their annual living expenses after four years is $68,068.35.

Learn more about Annual living expenses here:brainly.com/question/26383826

#SPJ1

8 0
1 year ago
Other questions:
  • The face value of a note refers to the amount borrowed plus interest received at maturity from the maker. that can be received i
    5·1 answer
  • Novak Corp. reported net income of $178,150 for 2022. Novak Corp. also reported depreciation expense of $36,430 and a loss of $5
    12·1 answer
  • Economists usually assume that production is subject to increasing opportunity costs because: a. higher production usually resul
    9·1 answer
  • A stock S that pays no dividends is currently trading at $30/share. Another stock Q which pays a onetime dividend of $0.5/share
    6·1 answer
  • Credit reports are viewed by?
    11·1 answer
  • Which of the following statements is true of the Age Discrimination in Employment Act?
    11·1 answer
  • Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accountin
    5·1 answer
  • Okun's law Multiple Choice quantifies the relationship between nominal and real incomes. shows the relationship between the unem
    12·1 answer
  • At the beginning of 2014, Sabrina Company had the following normal ledger balances: Accounts Receivable: $24,000 Allowance for U
    15·1 answer
  • Amateurs who cash bad checks because of some financial crisis but have little identification with a criminal subculture are call
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!