To Make It Possible for Low-Income Borrowers to Obtain Mortgages

question 28

Multiple Choice

To make it possible for low-income borrowers to obtain mortgages, subprime lenders:

• A)lowered the loan payment-income ratio.
• B)required proof of income.
• C)offered standard 30-year mortgage rates.
• D)All of the Answer s are correct.

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Definitions:

Cost Reconciliation

The process of analyzing and adjusting the differences between the recorded costs and the actual costs.

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred in converting raw materials into finished products.

Unit Costs

The expense associated with manufacturing, storing, or buying a single unit of a good or service.

Materials

Basic items or substances used in the manufacturing process to create products or goods.