Lenders may take as collateral to secure loan

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Question 1

The client solution is not just about providing a product that will meet their product needs. Developing a solution for your client's needs also involves the security or collateral that the lender will require for that loan product.

1. List a minimum of three types of assets that lenders may take as collateral to secure a loan. (This can be security for either consumer or commercial lending.)

2. List a minimum of two security documents that are required in order for the lender to have control over the asset while the loan is in place.

3. If a director offers their home (in their personal name) as security for lending in their company name, what is the name of the security document that is required to link the asset to the loan?

4. From time to time a client may need to offer a second property to support a loan in order to reduce the loan-value-ratio (LVR) to avoid LMI and meet lender requirements. What is this name of this practice?

Reference no: EM133389434

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