A Lender Can Make a Higher-Priced Mortgage Loan Based on the Value

question 8

True/False

A lender can make a higher-priced mortgage loan based on the value of the consumer's home without verifying the consumer's ability to repay the loan.

---

Definitions:

Double Declining Balance

A method of accelerated depreciation which doubles the depreciation rate of the straight-line method, resulting in higher depreciation expenses in the earlier years of an asset's life.

Intangible Assets

Non-physical assets that hold value, such as patents, trademarks, and goodwill.

Intangible Assets

Non-physical assets that possess value due to their intellectual or non-material nature, such as patents, trademarks, and goodwill.

Depreciation Method

A systematic approach used to allocate the depreciable amount of an asset over its useful life, such as straight-line or declining balance methods.