Home > Term: direct mortgage loan
direct mortgage loan
Under a direct mortgage loan, the bank is granted a mortgage lien as security for its credit exposure. Where security is given in the form of a mortgage note, this becomes the property of the bank. If the bank's claims are not met when due, it can take legal action to enforce the sale of the underlying property and use the proceeds to settle the outstanding debt directly. See also mortgage loan, indirect mortgage loan.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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Creator
- Stefan K
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