As a matter of risk management, commercial lenders (such as banks) are normally willing to accept a mortgage for 100 percent of a property's current market value.That practice is based on the effects of inflation and on the fact that property values always increase no matter what happens in the economy.

Question

Quizplus · Accepted Answer

This statement is false. Commercial lenders do not always accept a mortgage for 100 percent of a property's current market value, and property values do not always increase. Lenders consider various factors such as the borrower's creditworthiness, the property's condition, and market trends before approving a mortgage. Additionally, property values can fluctuate depending on economic conditions and other external factors.

As a Matter of Risk Management, Commercial Lenders (Such as Banks)