Reference no: EM132976954

Problem 1: Three criteria used to measure creditworthiness of a borrower include

A. Level of equity invested by the borrower, whether or not the borrower has secured a
mortgage in the last 10 years, and the borrower's credit history.
B. Whether or not the borrower has secured a mortgage in the last 10 years, the borrower's credit history, and the level of equity invested by the borrower.
C. Level of equity invested by the borrower, the borrower's income level, and the borrower's credit history.
D. The number of borrowers involved, the borrower credit history, and the level of equity invested by the borrower.

Problem 2: A(n) ___________________ loan is not insured by FHA or VA but can be privately insured.

A. Conventional
B. Unconventional
C. Insured
D. Uninsured

Problem 3: _________________________ allow the borrower to make small payments initially on the mortgage; the payments increase on a graduated basis over the first 5 to 10 years and then level off.

A. Gross-payment mortgages (GPMs)
B. Graduated-payment mortgages (GPMs)
C. Managed-payment mortgages (MPMs)
D. Minimized-payment mortgages (MPMs)