...1. On the borrower’s driver’s license, I am checking the address, date of birth, name and expiration date. We also want to pack sure the pictures can be seen. a. I would not accept this due to the fact Mr. Fuller’s license is expired and I can hardly make out the pictures. 2. On the Schedule A, I am checking an ALTA policy, effective date, proposed vesting of title, current vesting of title, fee or fee simple, commitment number, title company name, loan number, land description, and proposed mortgagee. a. I would not accept this due to the fact that the effective day is more than 90 days old. 3. I would check section viii. Declarations and make sure the box in line k for permanent resident aliens is checked. 4. The title commitment is valid for 90 days after the effective date. 5. Typically we would check for flipping when we check the chain of title. 6. Refi – We would conditions the closer to have the borrower sign the property out of trust and we would need a copy of the trust agreement to make sure the borrowers are authorized to do that. Purchase – We need a letter to explain who the authorized signer is from whomever holds the trust and the signer must be able to sign the property out of trust at closing considering that the holders of the trust will no longer own the property. 7. I would enter tax information for the subject property into the Good Faith Items menu. I would enter the taxes into line 109 if we...
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...Problems and Solutions 1 CHAPTER 1—Problems On 12/04/01, consider a fixed-coupon bond whose features are the following: • • 1.1 Problems on Bonds Exercise 1.1 face value: $1,000 coupon rate: 8% • coupon frequency: semiannual • maturity: 05/06/04 What are the future cash flows delivered by this bond? Solution 1.1 1. The coupon cash flow is equal to $40 8% × $1,000 = $40 2 It is delivered on the following future dates: 05/06/02, 11/06/02, 05/06/03, 11/06/03 and 05/06/04. The redemption value is equal to the face value $1,000 and is delivered on maturity date 05/06/04. Coupon = Exercise 1.3 An investor has a cash of $10,000,000 at disposal. He wants to invest in a bond with $1,000 nominal value and whose dirty price is equal to 107.457%. 1. What is the number of bonds he will buy? 2. Same question if the nominal value and the dirty price of the bond are respectively $100 and 98.453%. Solution 1.3 1. The number of bonds he will buy is given by the following formula Number of bonds bought = Cash Nominal Value of the bond × dirty price Here, the number of bonds is equal to 9,306 n= 2. n is equal to 101,562 n= Exercise 1.4 10,000,000 = 101,571.31 100 × 98.453% 10,000,000 = 9,306.048 1,000 × 107.457% On 10/25/99, consider a fixed-coupon bond whose features are the following: • face value: Eur 100 2 Problems and Solutions • • coupon rate: 10% coupon frequency: annual • maturity: 04/15/08 Compute the accrued interest taking into account the four different day-count...
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