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It means that banks should lend to people that they expect to be able to pay it back. It is not responsible to loan money to someone who they know will have great difficulties in paying it back or not properly checking the ability of the person to pay. While the official may get some bonus for having made the loan, the bank will be highly unlikely to get its money back and this will also put the person who has got the loan under severe financial pressure as they attempt to make repayments. Some banks have loaned money to people and then been unable to get it back, leaving the bank in trouble and the person who loaned it in trouble. Banks should only loan reasonable amounts and to people who should be able to pay it back. So they should do full checks on who they are loaning to and only give them what they can afford to pay back. Not doing so is irresponsible.
Wiki User
∙ 8y ago
Wiki User
∙ 8y agoThe responsibility is on the lender directly to lend in an open manner to borrowers and reveal all of the proper facts in a complete and forthright way and maintain affordable expenses. Lenders must also be compliant with the Truth In Lending Act and fair in all collection practices, as well as following state and federal guidelines.
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Is the cosigner the only one responsible on the loan?
The primary borrower is responsible for making the payments and adhering to the terms of the lending contract. The cosigner is legally obligated only if the primary borrower defaults on the lending agreement or files bankruptcy (chapter 7).
What does securities lending mean?
Securities lending means the lending of securities from one person to another. People like to sell their borrowed securities quickly for a profit, then purchase their original security at a lower cost.
What exactly is a cash flow lender?
A cash flow lender is responsible for lending or not lending to perspective loaners. The "cash flow" part is referring to the cash flow that the loaner believes he/she will generate from the business, that they are subsequently borrowing the loan for.
What do you mean by Loan IQ experience?
Loan IQ is commercial lending application developed by Misys
If you surrendered a vehicle in chapter 7 and it was not recovered by the lending agent and was later totaled who gets the insurance money?
The lender, and the borrower is responsible for any remaining discrepancy amount and the applicable fees.
When was Center for Responsible Lending created?
The Center for Responsible Lending can be located by visiting their official site. Visiting their official site will provide information on their location and ways to contact them.
Is the cosigner the only one responsible on the loan?
The primary borrower is responsible for making the payments and adhering to the terms of the lending contract. The cosigner is legally obligated only if the primary borrower defaults on the lending agreement or files bankruptcy (chapter 7).
What do BPLR mean?
Benchmark Prime Lending Rate
What does securities lending mean?
Securities lending means the lending of securities from one person to another. People like to sell their borrowed securities quickly for a profit, then purchase their original security at a lower cost.
Factors responsible for inflation?
Inflation can be a result of economic development, national debt, unemployment, production cost, and international lending.
What exactly is a cash flow lender?
A cash flow lender is responsible for lending or not lending to perspective loaners. The "cash flow" part is referring to the cash flow that the loaner believes he/she will generate from the business, that they are subsequently borrowing the loan for.
What do you mean by subvention in lending loans?
Desloge family St. Louis mo
What does labor lending law mean?
Labor lending laws are regulations that are designed to eliminate illegal discrimination in lending practices. As a result, lenders cannot discriminate people regardless of their race, color, national origin, religion, gender, handicaps, or familial status.?æ
Where can I get information about small business lending?
The most obvious place to find information on small business lending is the Small Business Administration at sba.gov. Another resource is your local bank. Local banks are very responsible and helpful to small businesses that are in the area. The final place to look for lending to a small business is peer-to-peer lending institutions such as prosper.com. This option is not as difficult or dangerous as many would have you believe and can be a great resource if other options are not available to you.
What is business lending?
what is lending business?
What do you mean by Loan IQ experience?
Loan IQ is commercial lending application developed by Misys
What does deemed responsible mean?
if someone is deemed responsible it means that people think that he/she is responsible
