A Lender Can Make a Higher-Priced Mortgage Loan Based on the Value

question 34

True/False

A lender can make a higher-priced mortgage loan based on the value of the consumer's home without verifying the consumer's other credit obligations.

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Definitions:

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Expenses

Outflows of resources or incurrences of liabilities that result in a decrease in the equity of a company, other than distributions to owners.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check the arithmetic accuracy of the accounts.