What aspect do the real estate lending standards NOT typically cover?

Real estate lending standards are primarily focused on establishing guidelines that ensure loans are issued responsibly and with manageable risk levels for both lenders and borrowers. These standards typically include comprehensive measures for risk assessment procedures, borrower qualification criteria, and loan amount disbursement methods.

The focus on borrower qualification criteria ensures that lenders assess a borrower's ability to repay a loan, which is critical in minimizing default risk. Risk assessment procedures also play a crucial role in evaluating potential borrowers and the properties being financed. Loan amount disbursement methods are essential for outlining how funds will be released to ensure that they are used appropriately for the intended purpose of the loan.

In contrast, interest rate capping is not a standard aspect addressed in real estate lending standards. While regulating interest rates can be a part of broader financial regulations and market practices, it doesn’t typically fall under the lending standards that govern how loans are granted, evaluated, or managed. This means that while lenders may choose to implement interest rate caps based on market conditions or competitive strategies, it is not a universal standard in real estate lending practices.