Mortgage, loan and property. What is a mortgage?

A mortgage is putting a property as a guarantee to a lender as a security for a mortgage loan.

While a mortgage in itself is not a liability or a dept, it is evidence of a debt. It is a transfer of an interest in property, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the property when the terms of the mortgage have been satisfied or concluded.

In other words, the mortgage is a guarantee for the loan that the lender makes to the borrower. In all but a very few states, a mortgage creates a lien on the title to the mortgaged property.

Tuesday, February 12, 2008

Writedowns sinks Credit Suisse profit

Fourth-quarter net income fell 72% to $1.2 billion after credit-related writedowns.

Net profit dropped 72% to $1.2 billion because of writedowns for money-market funds and investment banking.

Credit Suisse took writedowns of $1.88 billion, which demonstrates it continues to weather the subprime crisis better than some competitors.

More info on CNN Money…

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