According to the 2007 interagency statement on subprime mortgage lending, what should an institution offering mortgage loans to subprime borrowers provide before submission of an application?

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The 2007 interagency statement on subprime mortgage lending emphasizes that institutions should provide information on potential payment shock to subprime borrowers before they submit an application. This is to ensure borrowers understand the risks associated with adjustable-rate mortgages and other loan features that could lead to significant increases in payment amounts.

According to the 2007 Interagency Statement on Subprime Mortgage Lending