Which of the following are disadvantages of PLAMs?
A) Lenders face high levels of interest rate risk under PLAMs.
B) Fewer homebuyers are likely to qualify for financing using PLAMs in comparison to CPMs.
C) The price level used to index PLAMs is measured on an ex post basis and historic prices may not be an accurate reflection of future price.
D) All of the above.
Correct Answer:
Verified
Q2: ARMs eliminate all the lender's interest rate
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Q10: ARMs help lenders combat unanticipated inflation changes,interest
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Q19: Lender's can partially avoid estimating interest rates
Q20: 
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