The greater the collateral value of the loan, the less the lender has to worry about adverse selection. This statement is wrong. Generally speaking, the greater the value of collateral, the higher the evaluation cost and the higher the loan amount. In other words, if the borrower wants to choose another bank, it is bound to consider the cost issues such as one-time repayment of the loan and the vacuum period of funds caused by loan approval. The correct statement is: the greater the collateral value of the loan, the less worried the bank is about adverse selection.

Extended data:

Mortgage means that the mortgagor and the creditor conclude an agreement in writing not to transfer the possession of the mortgaged property and take the property as the creditor's right guarantee. When the debtor fails to perform the debt, the creditor has the right to discount the property or give priority to compensation with the price of auction or sale of the property according to law.

Mortgage characteristics

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

Mortgage does not transfer possession of mortgaged property. Article 33 of the Guarantee Law: "Mortgage as mentioned in this Law refers to the act that the debtor or a third party does not transfer the possession of the property listed in Article 34 of this Law and uses the property as a guarantee for creditor's rights. When the debtor fails to perform the debt, the creditor has the right to discount it in accordance with the provisions of this law or give priority to compensation with the price of auction or sale of the property. "

(3) When the debtor fails to perform the debt, the creditor has the right to discount the auctioned or sold property or give priority to compensation according to law.

kind

(1) Real estate mortgage

Refers to the mortgage set with real estate as collateral. The so-called real estate refers to the 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 the right to use construction land and the contracted management right of mortgaged land), buildings and other land attachments (such as houses).

(2) Chattel mortgage

Refers to the mortgage set with movable property as collateral. Movable property refers to property that can be moved without affecting its use value or reducing its value (in China, it is limited to special movable property such as transportation).

(3) mortgage of rights

It refers to the mortgage with various property rights stipulated by law as collateral. According to the current laws of China, rights can only be used for pledge.

(4) consortium mortgage

Also known as enterprise mortgage, it refers to the mortgage made by the mortgagor (enterprise) with all his movable property, real estate and rights as the mortgage target; This type is actually a collection of various guarantee types, and it is not a legal mortgage method.

⑤ Joint mortgage

Also known as blanket mortgage, it refers to the mortgage set on several different properties with the same creditor's right as the guarantee. This type is actually a collection of various types of guarantees, and it is not a legal mortgage method.

(6) Maximum mortgage

It refers to the agreement between the mortgagor and the mortgagee to guarantee the creditor's rights that occur continuously in a certain period of time with collateral within the maximum limit.