In Some Cases,lenders Require That Borrowers Obtain Default Insurance

question 29

Multiple Choice

In some cases,lenders require that borrowers obtain default insurance.The purpose of such insurance is to:

• A)Decrease the effective interest rate on the loan
• B)Increase the value of the underlying property
• C)Protect the borrower from defaulting on the loan
• D)Protect the lender from losses associated with borrower default on the loan

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