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Service the Loan: How Much is Enough When Assessing Borrower’s Ability?
When assessing a borrower’s ability to service the loan, how much is enough?
Mortgagees are generally required to take steps to ensure a borrower is able to service the loan. Whether by investigating an exit strategy or seeking assurances through a declaration. However, the steps required need to be determined on a case-by-case basis as potential red flags can put a mortgagee on notice that further inquiries need to be made.
