Below are the risks associated with Mortgage loans Credit Risk is the risk to earnings from borrowers failure to meet the bank’s contract Interest rate risk to earnings from fluctuation of interest rates in market Price risk is the risk to earning from changes in the values of foreign exchange, equity etc Transaction risk is […]Continue Reading... No Comments.
Term mortgage means the loan provided against the physical asset. Mortgage backed securities are the chunks of fixed income securities which are backed by the physical assets in its early life cycle. First the bank provides the required mortgage loan to the borrower. Now the next step is the schedule of repayment which is decided […]Continue Reading... No Comments.
Basel I had been modified later to Basel II in 2004 to make it more effective to regulate the banks. While Basel I had considered only the credit risk, Basel II has considered other risk factors as well and suggested international standard guidelines to guard all the banks against the same. Basel II has published […]Continue Reading... No Comments.