An Institution That Originates and Holds a Fixed-Rate Mortgage Is

question 54

Multiple Choice

An institution that originates and holds a fixed-rate mortgage is adversely affected by ____ interest rates; the borrower who was provided the mortgage is adversely affected by ____ interest rates.

• A)stable; decreasing
• B)increasing; stable
• C)increasing; decreasing
• D)decreasing; increasing

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Definitions:

Legally Enforceable

A term, condition, or agreement that is legally enforceable can be upheld or compelled in a court of law.

In Writing

A method of documenting information that involves the use of written or typed text.

Agreements

Contracts formed between two or more parties outlining terms and conditions regarding a specific matter or transaction.

Contracts

Legally binding agreements between two or more parties that outline terms and conditions for the exchange of services, goods, or obligations.