In the Modern Framework of Home Mortgage Lending, There Are

question 8

Multiple Choice

In the modern framework of home mortgage lending, there are four channels by which first mortgage home loans are created. Within which of the following channels would you typically find a Wall Street investment bank obtaining loans, pooling loans, and creating a senior-subordinate security structure?

• A) Traditional direct (portfolio) lending
• B) FHA/VA loan securitization
• C) Conforming conventional loan securitization
• D) Nonconforming Conventional loan securitization

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Definitions:

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Mental Processes

The internal, cognitive mechanisms by which individuals perceive, think, understand, decide, and remember information.

Social Processes

Patterns of social interactions and behaviors among individuals and groups, shaping societal norms and relationships.

New-Car Buying

The process of researching, locating, and purchasing a brand-new vehicle, typically involving comparison of models, test drives, and negotiation of terms.