The president of the bank has asked you to investigate the possibilities of using this money in operations rather than sending it to outside markets. The primary revenue generating tool for Stupendous Bank is in offering mortgages, but the bank has not diversified the types of loans it offers to its customers.
1. What different types of mortgage the bank can offer.
2. What are some options that the bank may have if it needs access to money tied up in long term mortgages.
3. Explain why expanding mortgage options can be beneficial to Stupendous Bank.
4. Explain some risks to the board of directors including liquidity risks.
5. Considering the current status of mortgage lending, offer a recommendation about the use of this investment