Additional precautions taken by mortgage lending institutions include which of the following: (Select all that apply) Obtaining the current price of the property Ensuring all taxes are paid Establishing the title and legality of the property Reviewing the location of the property Establishing the market value of the property

Suppose you apply for a loan for the first time. How does the bank assessthe riskiness of the loan it might make to you?

Which of the following in NOT one of the four typical purposes that mortgages are used for:Select one:a. Securityb. Purchasec. Refinanced. Equity take-outs

2. (a) You are selling your home, which has a large mortgage with favourable rates. You want to know whether a new purchaser can assume this mortgage. (i) Explain when assumption of a mortgage may occur, and also discuss whether you could bear any liability if the mortgage is assumed. (ii) Would novation of the mortgage be a better idea? Explain when novation may occur, and any liability you could face. (b) You are able to sell your property and now your financial advisor suggests that you should invest your new windfall in mortgages. He lists the various types of mortgages available. Discuss at least three different types of mortgages, relating their advantages and disadvantages to a mortgagee from a legal standpoint, in particular with respect to the security involved.

6. The chartering process is especially designed to deal with the problem, and regular bank examinations help to reduce the problem. A) adverse selection; adverse selection B) adverse selection; moral hazard C) moral hazard; adverse selection D) moral hazard; moral hazard

When a bank securitizes a parcel of its home loans, the credit risk posed by the loans is borne by:Group of answer choicesthe ratings agencythe special purpose vehicleinvestors in the mortgage-backed securitiesthe bank whose loans are being sold