The greater the value of the collateral for the loan, the less the lender has to worry about adverse selection. This statement is wrong. Generally speaking, the greater the value of the collateral, the higher the appraisal fee, and the higher the loan amount. In other words, if the borrower wants to choose another bank, he must consider the one-time return of the loan, the fund vacuum period caused by loan approval, and other factors. The issue of cost. The correct statement is: the greater the value of the collateral for the loan, the less worried the bank is about adverse selection.

Extended information:

Mortgage refers to a written agreement between the mortgagor and the creditor not to transfer the possession of the mortgaged property and to use the property as a guarantee for the creditor's rights. When the debtor fails to perform its debts, the creditor has the right to receive priority payment from the price of the property at a discount or from the auction or sale of the property in accordance with the law.

Characteristics of mortgage

(1) The mortgagor and the mortgagee shall enter into a mortgage contract in writing. Article 38 of the "Security Law": "The mortgagor and the mortgagee shall enter into a mortgage contract in writing."

(2) Mortgage does not transfer the possession of the mortgaged property. Article 33 of the "Security Law": "The term "mortgage" as used in this Law means that the debtor or a third party does not transfer possession of the property listed in Article 34 of this Law and uses the property as a guarantee for the creditor's rights. When the debtor fails to perform the debt, The creditor shall have the right to receive priority payment from the price of the property at a discount or from the proceeds from the auction or sale of the property in accordance with the provisions of this Law.”

(3) When the debtor fails to perform its debts, the creditor shall have the right to use the price at a discount or from the price of the property in accordance with the law. Priority will be given to the proceeds from the auction or sale of the property.

Types

(1) Real estate mortgage

Refers to the mortgage set up with real estate as collateral. The so-called real estate refers to property that cannot be moved or will lose its original value or use value after being moved, such as land (in China it is limited to construction land use rights and land contract management rights that can be mortgaged), buildings and other land attachments. Clothes (such as houses, etc.), etc.

(2) Chattel mortgage

Refers to the mortgage set up with chattels as collateral. Movable property refers to property that can be moved and does not affect its use value or reduce its value after being moved (in China, it is limited to special movable properties such as vehicles).

(3) Mortgage of rights

Refers to the mortgage using various property rights stipulated by law as the mortgage object. According to current Chinese law, rights can only be used for pledge.

(4) Consortium mortgage

Also known as enterprise mortgage, it refers to the mortgagor (enterprise) using all the movable property, real estate and rights as a mortgage object. Mortgage; this type is actually a collection of various security types and is not a legal mortgage method.

(5) ***Same Mortgage

Also called a blanket mortgage, it refers to a mortgage set on several different properties to guarantee the same claim. This type It is actually a collection of various security types and is not a legal mortgage method.

(6) Maximum mortgage amount

Refers to the agreement between the mortgagor and the mortgagee that within the maximum amount limit, the mortgage will be used as security for claims that occur continuously within a certain period.