Explain What Is Likely to Happen to the Rate of Mortgage

question 26

Essay

Explain what is likely to happen to the rate of mortgage loan default given the following: "For years home values across the country have increased on average 3 to 4% percent each year. Mortgage lenders have come to expect this to always be the case and so begin to offer mortgages with little to nothing down and not requiring PMI insurance. An economic slowdown occurs hitting a few areas of the country harder than others. Home values across the country begin to decrease with some areas seeing decreases of as much as 10%."

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Definitions:

Employee Assistance Program

Workplace-initiated programs that provide confidential resources and support to employees dealing with personal or work-related issues.

Air Traffic Controller

A professional responsible for directing aircraft safely in the sky and on the ground at airports, ensuring the orderly and efficient flow of air traffic.

Managed Care Programs

Healthcare systems designed to optimize patient care, utilization of services, and minimize costs through predetermined networks and coverage limits.

Mental Disorders

A wide range of conditions affecting mood, thinking, and behavior, impacting an individual's ability to function.