E. the lender does not take action primarily to protect the credit they have extended. A bank that wants to examine the operating efficiency of a borrower would most likely examine which of the following ratios? E. All of the options are correct.
A. The lender should check qualifications of the borrowing firm's management. B. The lender should evaluate the potential expenses incurred to service the loan. C. The lender should check whether adequate insurance coverage will be secured. D. The lender should consider the trends in market demand. E. All of the options are correct.
The purpose of the fair lending laws is to promote a fair and even-handed banking system through nondiscriminatory lending practices. Periodically reviewing the institution's fair lending program is a "best practice" for ensuring compliance. Which is a consequence of fair lending violations? D.
The bank must consider the revenues and expenses from all of the bank's dealings with the customer. E. None of the options is correct. Which of the following is a strength of the markup (or below-prime market) loan pricing method?
Married joint applicants receive a credit decision within 24 hours after submitting a completed application. This is an example of what type of discrimination?
Within 30 days of an applicants request for a copy. A. Promptly upon completion or at least 3 days before closing, whichever is earlier. An institution's loan policy states that home improvement loans under $20,000 will be charged a higher loan fee than loans over $20,000.
An institution's loan policy requires cosigners for all borrowers under age 25, regardless of credit history or experience. Borrowers over age 25 only have to provide a cosigner if their credit request needs additional support.