Which of the Following Is a Reason for an FI

question 52

Multiple Choice

Which of the following is a reason for an FI to sell a residential real estate loan rather than securitize it through GNMA?

• A)The loan is too large to meet securitization standards.
• B)The loan is not insured by FHA or guaranteed by the VA.
• C)The loan recipient's income cannot be verified.
• D)The loan carries a non-standard adjustable interest rate.
• E)All of the options.

---

Definitions:

Competitively

Refers to a market condition where businesses or individuals vie against each other to gain economic advantage or win consumers' favor.

Profit-Maximizes

Refers to the strategy or objective of an entity or individual aimed at achieving the highest possible profit from its operations, typically by managing costs, pricing, and output.

Profit-Maximizes

Strategies or actions by firms aimed at increasing their profits to the highest possible level.

Total Cost

The market value of the inputs a firm uses in production.