Which of the below statements is TRUE?

Question

Quizplus · Accepted Answer

The statement in option A is true as the payment-to-income ratio (PTI) and the loan-to-value ratio (LTV) are two of the primary quantitative underwriting standards used to assess an applicant's creditworthiness. Option B is false as the loan-to-value ratio (LTV) is the ratio of the loan amount to the appraised value of the property. Option C is partially true as a lower loan-to-value ratio indicates that the applicant has more equity in the property, which reduces the lender's risk of default. However, it does not guarantee that the applicant will be able to make the required payments as other factors such as creditworthiness and income also play a role.

Which of the Below Statements Is TRUE