Throughout the Process of Originating and Selling Mortgages, Mortgage Companies

question 16

Multiple Choice

Throughout the process of originating and selling mortgages, mortgage companies face a number of risks. Therefore, it is important for a lending institution to evaluate the risks of mortgage loan default through a process commonly referred to as:

• A) mortgage fallout
• B) loan servicing
• C) warehousing
• D) loan underwriting

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Definitions:

Physiological Needs

The basic physical requirements for human survival, such as air, water, food, shelter, and sleep, as identified in Maslow's hierarchy of needs.

Maslow's Hierarchy

A psychological theory proposing that human needs are arranged in a hierarchy, with basic needs like safety and physiological needs at the bottom, and self-actualization at the top.

Shelter

A place giving temporary protection from bad weather or danger.

Achievement

Success or attainment reached through effort, skill, or courage.