Relative to Residential Loans, the Underwriting Process for Commercial Loans

question 26

Multiple Choice

Relative to residential loans, the underwriting process for commercial loans is more complicated. The commercial loan underwriting process focuses first on which of the following?

• A) Individual borrower's credit quality
• B) Income producing potential of the collateral property
• C) Individual borrower's wages
• D) Individual borrower's personal assets

---

Definitions:

Common Attribute

A feature or characteristic shared by members of a group or category, which can facilitate grouping, comparison, or differentiation.

Cross-Cultural

Pertaining to or comparing two or more cultures, analyzing differences and similarities in behaviors, traditions, and values.

Hofstede

A framework for cross-cultural communication, developed by Dutch sociologist Geert Hofstede, that describes the effects of a society's culture on the values of its members, and how these values relate to behavior.

Networks

Structures made up of nodes (which can be individuals, organizations, computers, etc.) connected by links (which represent relationships or interactions), facilitating the flow of information or resources.