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

The statement is false. Commercial lenders may accept a mortgage for less than 100 percent of a property's current market value in order to mitigate their risk. Property values may not always increase and can be affected by economic factors.

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