Despite Many Innovations in the Lending Process That Made Mortgage

question 28

Multiple Choice

Despite many innovations in the lending process that made mortgage loans more accessible and affordable to the general public, many potential borrowers faced considerable barriers in qualifying for a loan and making a down payment. Which of the following types of loans was designed for a borrower with weak credit, those who seek 100 percent financing, or who cannot document their income?

• A) Conventional prime home loan
• B) Affordable housing loan
• C) Subprime mortgage loan
• D) Bridge loan

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Definitions:

Observable Behaviors

Observable behaviors are actions or reactions of an individual that can be visually monitored and recorded by others.

Internal States

Psychological conditions or feelings that arise from within an individual, such as emotions, moods, desires, or motivations.

Conscious Behaviors

Actions and responses that involve awareness and purposeful decision-making.

Association

A connection or linkage between two ideas, concepts, or events, often based on prior experience or learning.