When the Contract Rate at Closing Is Less Than the Current

question 23

Multiple Choice

When the contract rate at closing is less than the current market rate (i.e., interest rates have increased since the time of the loan commitment) , the mortgage banker will have to sell the newly originated loan at a discount. This scenario best depicts the mortgage banker's exposure to which of the following risks?

• A) Interest rate risk.
• B) Fallout risk.
• C) Default risk.
• D) Liquidity risk.

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Definitions:

Gender Schema

A cognitive framework that organizes information based on gender-related attributes.

Sexism Schema

Sexism schema involves the cognitive structures that shape the perception and understanding of gender roles and biases, influence behavior, and contribute to systematic gender discrimination.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond with the sex they were assigned at birth.

Gender Constancy

The understanding that one's gender remains the same across time and irrespective of changes in appearance or behavior.