Under the rule, a mortgage loan is an HPML if it is a closed-end transaction, secured by a consumer's principal dwelling, and has an interest rate above a certain threshold, as described in more detail below.
Final answer: The borrower is not required to make a down payment as a characteristic of a Qualified Mortgage (QM). The QM focuses on the borrower's ability to repay, limiting the debt-to-income ratio and fees, and ensuring the loan is fully amortized.
Final answer:
The statement "Information is subjective, relevant, and future-oriented" is not a characteristic of financial accounting, which focuses on objective reporting of historical data.
To summarize, the characteristic that is NOT typical of a money market instrument is "High Risk." Money market instruments are known for their low-risk nature, high liquidity, short-term maturity, and lower returns compared to most other asset classes.
In general, there are four main characteristics that money should fulfill: durability, divisibility, transportability, and inability to counterfeit.
Equity Shares is not a Money Market Instrument.
Indivisibility: This is not a characteristic of money. In fact, money must be divisible into smaller units.
Loans against shares cannot be considered as finance.
The correct answer to the given question is option c. Marketability of the product. There are four kinds of characteristics which are generally evaluated in ratio analysis: solvency, profitability, efficiency and liquidity. The marketability of a product cannot be evaluated from the financial statements of a firm.
Your mortgage will be considered a higher-priced mortgage loan (HPML) if the APR is a certain percentage higher than the APOR, depending on what type of loan you have: First-lien mortgages: If your mortgage is a first-lien mortgage, the lender of this mortgage will be the first to be paid if you go into foreclosure.
Conventional mortgage loans typically come with fixed interest rates and fixed periods of repayment. These mortgages generally require good credit, sufficient income, and may require a down payment or private mortgage insurance.
HPML. High-Priced Mortgage Loans (HPML) are the ones that have high prices of interests, closures of loans, and monthly installments which, stand higher than the Average Prime Offer Rate (APOR) in the market. They are consumers having difficulty in finding dwelling loans.
If the consumer is applying for an HPML to buy a flipped property, an additional appraisal is required if the price reflected in the consumer's purchase agreement is a certain amount higher than the seller's acquisition price.
For first liens, add 1.5 % to the listed index if the loan was locked in (or re-locked) during the week following the date. For example, if your APR is 7.09 and you subtract 1.5 your answer is 5.59. If your answer is higher than the posted index, which is currently 5.09 your loan is classified as an HPML.
The financial plan portrays all of the activities, assets, machinery, and materials that are required to accomplish these targets, within a stipulated time frame. Cost is not a feature of financial planning as the plan deals with determining the cash flow of the organisation.
It involves the use of credit and debt, securities, and investment to finance current projects using future income flows. Finance is closely linked to the time value of money, interest rates, and other related topics because of this temporal aspect. Finance can be broadly divided into three categories: Public finance.
Short Answer
future potential sales price of inventory is not an element of the financial statements.
The characteristic not associated with money market funds is high beta; they are designed to be low-risk investments with portfolios of short-term debt instruments and low volatility.
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Let's compare two examples of possible forms of money: A cow.
Monet was a French painter who helped to found Impressionism. His early work reflected the influences of realism and en plein air. As a mature painter, he used blotchy brush strokes, hazy figures, and thickly-applied paint to capture the impression left by an image.
Equity shares are long-term instruments and hence, cannot be a money market instrument.
Some of the features of money market instruments include: As they are low-risk instruments with short maturity periods, they are highly liquid. Money market instruments are usually issued by the government, banks and corporations having high credit ratings; hence, they are considered to be quite secure.
Treasury bills, repurchase agreement and commercial paper all are short term investments and have a maturity level of less than one year. Hence, shares and bonds having maturity of more than one year are not considered as money market instrument.