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If the Institution Offers Both Full and Reduced Documentation Loans

Question 24

Multiple Choice

If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should:


A) Be alerted to this fact
B) Not be alerted to this fact
C) Provide consumers with a clear statement of the options available
D) Not lead consumers with payment option ARMs to choose a non-amortizing or negatively amortizing payment

Correct Answer:

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