American_Bankers_Association
CTFA · Question #202
CTFA Question #202: Real Exam Question with Answer & Explanation
The correct answer is A. Private mortgage insurance. See the full explanation below for the reasoning.
Question
An insurance policy that protects the mortgage lender from loss in the event the borrower defaults on the loan; typically required by lenders when the down payment is less than 20%.
Options
- APrivate mortgage insurance
- BPublic mortgage insurance
- CDown payment
- DLoan to value ratio
Community Discussion
No community discussion yet for this question.