IIA
IIA-CFSA · Question #258
IIA-CFSA Question #258: Real Exam Question with Answer & Explanation
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Question
In a price risk situation if customers withdraw their applications a bank may be unable to originate enough loans to meet its forward sales commitments .Because of this kind of "Fallout" a bank may have to purchase additional loans in the secondary market at prices higher than anticipated. Alternatively, a bank may choose to liquidate its commitment to sell and deliver mortgages by paying a fee to the counterparty commonly called a ______________.
Options
- ASettlement
- BPair-off arrangement
- CEnd of loan settlement
- DNone of these
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