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Banks handle credit business. Before a bank grants a loan, it must evaluate a variety of aspects regarding the case thereby distinguish the risk. As time goes on, banks have developed kinds of risk management strategies to evaluate borrowers’ credit risk. By carefully evaluating and forecasting, bank will not issue loans until bank ensures its creditor rights are protected. However, the assessment of credit risk is, after all, an ex-ante prediction, which is difficult to achieve 100% reliability. Therefore, among the many borrowers, it is inevitable that there will be delays or collections due to failure to pay dues, that is, the so-called overdue loans of the commercial banks are generated.
This research focuses on the home mortgage loans at commercial banks, especially on documents, statements and clauses which consumers’ are asked to agree and sign on. Legal issues related to mortgage loan thus derived. This research aims to discuss the appropriateness of the measures taken by commercial banks, and to give objective review and analysis.
May the suggestions of the research not only have positive impact on the financial industry's, but also do their part for the stability of the country and society.
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