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If the Mortgage Loan Is Going to Be Packaged with Similar

question 11

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If the mortgage loan is going to be packaged with similar loans and then resold to investors as part of a commercial mortgage-backed security, the originating lender may rely more heavily on examining which of the following ratios in order to determine the maximum amount they are willing to lend to the borrower? (Note: This ratio indicates the cash-on-cash return the lender would earn on its invested capital if it had to foreclose on the property immediately after originating the loan)


Definitions:

Ishihara

Refers to an eye test to determine color vision.

Decibel

A unit of measure to express the degree of loudness of sound.

Pulse Oximetry

A non-invasive method to measure the oxygen saturation level of the blood.

Funduscopy

Examination of the fundus of the eye.

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