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In Order to Better Understand a Borrower's Probability of Default

question 1

Multiple Choice

In order to better understand a borrower's probability of default, lenders have a number of tools at their disposal. The ratio that measures the percentage of the price (or value) of a property that is encumbered by the first mortgage is referred to as the:

Definitions:

E-Mail

A method of sending messages electronically from one user to another via the internet.

Money Laundering

Falsely reporting income that has been obtained through criminal activity, such as illegal drug transactions, as income obtained through a legitimate business enterprise, to make the "dirty" money "clean."

Criminal Activity

Conduct that violates the law and is punishable by sanctions such as fines, imprisonment, or other penalties.

Legal Business

Operations and activities of organizations or individuals that are concerned with the law, including law firms, legal consultation, and court proceedings.