Loan Servicing Includes a Number of Responsibilities Such as Collecting

question 16

Multiple Choice

Loan servicing includes a number of responsibilities such as collecting monthly mortgage payments from the borrower,remitting principal and interest payments to investors,ensuring sufficient escrow payments are being made by the borrower,and managing default if it should arise.In exchange for these services,mortgage bankers receive a fee.If the outstanding loan balance is $250,000 and the annual servicing fee is 0.35%,what is the monthly fee for servicing the loan?

• A)$7.29
• B)$72.92
• C)$729.16
• D)$7291.67

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Definitions:

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life.

Disaster

A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.

Anticipate

To expect or predict something to happen in the future or to be prepared for an event or situation beforehand.

Hypomania

A mood state characterized by persistent disinhibition and mood elevation (euphoria), with behavior that is noticeably different from the person's typical behavior when not depressed.