ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Collateral
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Capital
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Character
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Conditions
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Detailed explanation-1: -Factors considered in the ability to repay include the borrower’s income, assets, employment status, liabilities, credit history, and the debt-to-income (DTI) ratio. As of early 2020, the Consumer Financial Protection Bureau (CFPB) was planning to eliminate the debt-to-income requirements.
Detailed explanation-2: -The external factors are those that depend on industry characteristics, such as the intensity of competition or the barriers to entry, and those that depend on the status of the economy, such as the phase of the business cycle or the level of interest rates.
Detailed explanation-3: -Understanding the 5 Cs of Credit Each lender has its own method for analyzing a borrower’s creditworthiness. Most lenders use the five Cs-character, capacity, capital, collateral, and conditions-when analyzing individual or business credit applications.
Detailed explanation-4: -What Is External and Internal Debt? External debt is the portion of a country’s debt that is borrowed from foreign lenders. Internal debt is the opposite, referring to the portion of a country’s debt incurred within its borders.
Detailed explanation-5: -What are the Basic Ability-to-Repay Requirements? The ATR/QM rule requires you to make a reasonable, good-faith determination that a member has the ability to repay a covered mortgage loan before or when you consummate the loan. More items