Archive for March 19th, 2008
Banks and Mortgage Finance (Lending criteria)
Wednesday, March 19th, 2008Lending criteria
Residential mortgage lending criteria accordingly concentrate on two areas:
1. The applicant
This investigation involves establishing whether the applicant can and will repay the loan. By examining the size of the applicant’s income compared to other expenses so as to ensure that the instalment is affordable. Ascertain that the income is reliable, based on the [...]
Banks and Mortgage Finance (Residential Mortgage Loans) continue…
Wednesday, March 19th, 2008Loans are granted by bank managers. Their lending limits are based on the experience of the manager; the size of the loan; or overall exposure to the customer.
In terms of banking legislation, residential mortgage lending is accorded a more preferential capital risk weighting compared to other forms of lending. This is because the loan is [...]
Banks and Mortgage Finance (Residential Mortgage Loans)
Wednesday, March 19th, 2008At the risk of including information which may become dated during the life of this book, material included on Exchange Control is stated as at the time of writing but is subject to change. Agents dealing with foreign funding must keep current through their bank.
During the early 1980’s, an uneasy truce existed between banks and [...]
