When a Borrower Does Not Qualify for a Conventional Mortgage

question 4

True/False

When a borrower does not qualify for a conventional mortgage, he might ask for and receive a subprime loan.

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Non-controlling Interest

A stake in a company that is less than 50%, implying that the holder does not have control over the company's operations.

Equity

The value of an ownership interest in a company, calculated as company assets minus its liabilities and representing the net assets owned by shareholders.

Acquisition Date

The exact date on which control of a business is obtained by the acquirer, upon which the acquirer applies acquisition accounting.