Which of the following factors(s) are important factors to help reduce the default risk of a loan?

Question

Quizplus · Accepted Answer

All of the factors listed (pricing of the loan, borrower's gross monthly income before taxes relative to the monthly loan payment, Loan to Value (LTV) Ratio, proper appraisal of property values) can help reduce the default risk of a loan. By ensuring that the loan is priced correctly and that the borrower has sufficient income to make the monthly payments, the lender can reduce the risk that the borrower will default. Additionally, by ensuring that the Loan to Value Ratio is appropriate and that the property is properly appraised, the lender can reduce the risk of loss in the event of a default.

Which of the Following Factors(s) Are Important Factors to Help