History and Law
FASB stands for?
Financial Accounting Standards Board
In the context of the CLFP Book of Knowledge framework, what is considered the beginning phase of the origination lifecycle?
Sales and marketing
What is one level up from equity is a form of debt called...?
Subordinated debt
What are the 5 C's of credit?
Credit, Conditions, Character, Collateral, Capacity
How many variables are needed to solve for a Tval problem?
3
TRAC stands for?
Terminal Rental Adjustment Clause
What origination channel is the following characteristic describing? Referral sources generate sales.
Third-party origination
What process is commonly used for small-ticket portfolios?
Behavioral scoring
For a lease, the lessee is typically required by the lessor to carry these two types of insurance policies
Property and Liability
When are the 3 advanced payments?
First and last 2.
What are the 3 main sources of US Law
Case, Statutory, and Regulatory
In what origination channel is fraud likely the lowest?
Direct origination channel
Of these, what is the simplest form of external funding? Discounting, Asset Securitization, Gifting, or Brokering
Brokering
A ______________ is a fundamental document by which a lessor agrees to provide equipment or personal property or rights to a lessee in return for rental payments.
Lease
Solve for lease payment.
Lease amount = 25,595.
Rate factor = .02234.
$571.79
To perfect a financing statement in equipment, where must a secured party file it?
Location of debtor
What marketing strategy does this describe? The business focuses on only one or a few segments with the intention of capturing a large share of these segments.
Concentrated marketing
Under a brokering structure, the broker's profit on a transaction generally includes what?
Upfront commission only
Changing the terms and conditions of the credit approval may reduce risk on specific lease transactions. What concept is this sentence describing?
Deal structuring
What is the rate factor for the following variables?
Yield = 21%
2 advanced payments.
48 months
.02993
FASB 13 issued this in 1976 that helped accomplish what?
Provided for the classification of a lease and treatment for it on financial statements
What is considered the most important and complex factor in the design of a marketing plan?
Pricing strategy
What are some signals of potential delinquency and red flags indicating potential non-performing accounts?
Cancelling of an ACH
Lack of communication on the lessee's part
Change in ownership/management.
What section of the lease sets forth the lessor's rights in the event of a lessee default?
The remedies section.
When is a residual paid out?
At the end of the contract.