When a bank originates a loan, it
A)initiates a contact with a borrower
B)conducts a credit analysis to determine the borrower's creditworthiness
C)designs the loan contract
D)collects the payments
E)a, b, and c only

Question

Quizplus · Accepted Answer

When a bank originates a loan, it initiates a contact with a borrower, conducts a credit analysis to determine the borrower's creditworthiness, and designs the loan contract. However, collecting payments is typically done by a separate department within the bank or outsourced to a third-party servicer.

When a Bank Originates a Loan, It