When a financial institution sells a mortgage with recourse, the financial institution retains a credit risk liability in the event the buyer returns the mortgage.

Related MCQs

• As part of a mortgage agreement, a financial institution places a lien on the property until the loan is paid in full.
• As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is applied to principal _________ while the amount that is applied to interest ___________.
• What is the stamp duty to be paid in respect of any document executed by any banker financial institution for issuing a debenture or bond?
• An equitable mortgage can be created in respect of _______?
• A mortgage can neither sue for foreclosure nor for sale of the property in...............
• Mortgage is defined under
• Mortgage borrowers must pay 20 percent of the home’s purchase price at closing as a down payment.
• . _________ paid at closing can reduce the interest rate used to determine the monthly payments on a mortgage.
• When financial institutions and banks undertake activities related to banking like investment, issue of debit and credit card etc then it is known as _____________________.
• If the holder of a bill of exchange allows the drawee more than ___ hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.