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American Bankers Association Exam CRCM Topic 2 Question 78 Discussion

Actual exam question for American Bankers Association's CRCM exam
Question #: 78
Topic #: 2
[All CRCM Questions]

Underwriting standards in Subprime Mortgage Lending include:

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Suggested Answer: B

by Olive at Dec 13, 2023, 05:17 AM

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Thad
27 days ago
Hmm, options B and D both sound like they're on the money. Lenders need clear policies and compensating factors when dealing with high-risk borrowers. No room for cowboys in subprime lending!
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Gianna
28 days ago
I'm thinking option A is the way to go. Debt-to-income ratios are a critical underwriting standard for subprime mortgages. Lenders need to keep a close eye on that metric.
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Fatima
10 days ago
A) The borrower's debt-to-income ratio should include the borrower's total yearly housing-related payments as a percentage of gross monthly income
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Elenore
1 months ago
I'll go with option D. Layering multiple risk features requires robust compensating factors to support the underwriting decision. Gotta be careful with subprime lending, folks.
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Fabiola
4 days ago
User 1: I agree, option D is important to consider when dealing with subprime lending.
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Susy
1 months ago
Wow, option C really hits the nail on the head. Stated income loans to subprime borrowers should only be made with strong mitigating factors. No room for risky lending practices here!
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Celeste
2 months ago
I believe institutions should have clear policies in place to avoid risky lending practices that could lead to defaults.
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Gerald
2 months ago
Option B seems to cover the key underwriting standards for subprime lending. Clear policies on risk-layering features are crucial to manage the risks involved.
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Barrie
16 days ago
Yes, it's important to consider mitigating factors when offering stated income and reduced documentation loans to subprime borrowers.
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Barrie
28 days ago
I agree, having clear policies on risk-layering features is essential to ensure responsible lending practices.
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Sherill
1 months ago
It's important to consider mitigating factors when offering stated income or reduced documentation loans to subprime borrowers.
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Lamar
1 months ago
Mitigating factors are crucial to support the underwriting decision and the borrower's repayment capacity.
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Sherill
1 months ago
I agree, having clear policies on risk-layering features is essential to ensure responsible lending practices.
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Rosalind
1 months ago
It's important to consider mitigating factors when offering stated income or reduced documentation loans.
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Alecia
1 months ago
Yes, it helps manage the risks involved and ensures responsible lending practices.
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Elouise
1 months ago
I agree, having clear policies on risk-layering features is essential in subprime lending.
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Ryan
2 months ago
I agree, it's crucial to consider factors like debt-to-income ratio and documentation when lending to subprime borrowers.
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Alica
2 months ago
I think underwriting standards are important for ensuring borrowers can repay their loans.
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