Mortgage Originators Often Offer Many Types and Forms of Available

question 8

Multiple Choice

Mortgage originators often offer many types and forms of available residential loans as part of their mortgage menu. However, the predominant form of prime conventional mortgage remains the:

• A) (fixed-rate) level payment mortgage (LPM)
• B) adjustable rate mortgage (ARM)
• C) subprime mortgage
• D) alt-A mortgage

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Definitions:

Title

The legal right to own, use, or dispose of property or assets.

Seller

refers to an individual or entity that offers goods or services for sale to consumers or other businesses.

Merchant

An individual or business engaged in the selling of goods or services, especially those involved in wholesale or retail trade.

Risk of Loss

Refers to the financial and legal responsibility for damage, destruction, or loss of goods, usually determined by the terms of sale like F.O.B.