The risk of repayment of a conventional loan depends upon the ability of the borrower to pay and the value of the security provided by the mortgage.

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The ability of the borrower to pay and the value of the security provided are two key factors that determine the risk of repayment of a conventional loan. If the borrower is unable to make the required payments, or if the value of the security falls below the amount borrowed, the lender may have difficulty recovering the loan.

The Risk of Repayment of a Conventional Loan Depends Upon