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NEW QUESTION: 1
Underwriting standards in Subprime Mortgage Lending include:
A. Mitigating factors should be present when risk layering features are combined in order to support the underwriting decision and the borrower's repayment capacity
B. The borrower's debt-to-income ratio should include the borrower's total yearly housing-related payments as a percentage of gross monthly income
C. Stated income and reduced documentation loans to subprime borrowers should be made only if there are clear, documented mitigating factors
D. Institutions should have a clear policy governing the use of risk-layering features, such as reduced documentation loans or simultaneous second lien mortgages
Answer: B
NEW QUESTION: 2
Answer:
Explanation:
Explanation
NEW QUESTION: 3
Which two statements are true about Action and Action Reasons? (Choose two.)
A. It is mandatory to associate Actions with Action Reasons.
B. Terminations predictive analytics uses Actions and Reasons data to identify whether a termination is voluntary or involuntary.
C. There is always a one-to-one relationship between Action Type and Action.
D. The history of effective date changes can be tracked well by using the Actions framework.
Answer: B,D