Based on your understanding of the risks associated with different mortgage loan types, which of the following mortgage loans would be considered the safest with respect to default risk?:

Question

Quizplus · Accepted Answer

Qualified mortgage loans typically have stricter lending standards, such as a cap on debt-to-income ratios, and require documentation of borrowers' ability to repay the loan. This reduces the risk of default compared to subprime, option ARM, or alt-A loans, which have been associated with higher default rates.

Based on Your Understanding of the Risks Associated with Different