Multiple Choice
Based on your understanding of the risks associated with different mortgage loan types, which of the following mortgage loans would be considered the safest with respect to default risk?:
A) subprime mortgage loans
B) qualified mortgage loans
C) option ARM loans
D) alt-A mortgage loans
Correct Answer:
Verified
Correct Answer:
Verified
Q20: Considered the most common type of home
Q21: Suppose that you are in the process
Q22: To be considered a qualified mortgage, the
Q23: FHA mortgage insurance covers any lender loss
Q24: Suppose a buyer agrees to purchase a
Q26: Mortgage loans made to borrowers with normal
Q27: In addition to the UFMIP (up-front mortgage
Q28: Suppose you have obtained a 6%, 30
Q29: Lenders generally require private mortgage insurance (PMI)
Q30: Assume that a veteran decides to purchase