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The cost of a bad hand When selling a loan, lenders provide legal assurances to the government-sponsored enterprises ( GSE s) that guarantee the accuracy and completeness of the loan data, known as representations and warranties. These reps and warrants cover borrower income, employment, and property information.
For starters most REALTORS and buyers, at least in the Northeast, refer to them as a Closing Cost Credit. Lately with all the real estate settlement talk they have often been referred to as Sellers Concessions. For the record they are one in the same. In many ways they help sellers because many buyers cannot buy without them.
In addition to property-level cash flow, GPs typically charge fees (acquisition, asset management, disposition) and earn a promote or disproportionate share of profits once certain returns are met. Lenders, appraisers, and brokers typically reference market value when determining loan amounts or pricing recommendations.
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