When Considering a ARM Loan, the Lender Must Explain to the Borrower

question 74

Multiple Choice

When considering a ARM loan, the lender must explain to the borrower, in writing, the

• A) worst-case scenario.
• B) best-case scenario.
• C) average-case scenario.
• D) respective credit report.

---

Definitions:

Nicotine

Nicotine is a stimulant drug found in tobacco plants that affects the nervous system and is both addictive and potentially harmful.

Unborn Children

Refers to fetuses or embryos that are in the developmental stages within the womb, prior to birth.

Prenatal Development

The process of growth and development inside the womb, from conception to birth, encompassing all phases of embryonic and fetal development.

Zygote

The initial cell formed when a new organism is conceived, resulting from the union of an ovum and a sperm cell.