The Effective Cost of a Wraparound Loan Should Be Comparable

question 20

True/False

The effective cost of a wraparound loan should be comparable to the cost of a second mortgage with the same loan-to-value ratio.

---

Definitions:

Courts Require

This refers to the mandates or conditions that legal courts demand or need for proceedings, evidence, or actions within their jurisdictions.

Public Policy

The principles and standards regarded by the legislature or by courts as being of fundamental concern to the state and the whole of society.

Void Agreement

A contract or agreement that is null and has no legal effect from the beginning due to illegal terms or conditions violating legal statutes.

Regulatory Licensing Statute

Legislation that mandates individuals or entities to obtain permits or licenses in order to engage in certain activities, ensuring adherence to standards and regulations.