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A Subprime Mortgage Refers to a Mortgage Securing a Loan

Question 60

Multiple Choice

A subprime mortgage refers to a mortgage securing a loan that is issued:


A) to consumers at an interest rate lower than the prime interest rate established by the treasury.
B) on property that cannot pass a reasonable safety inspection.
C) to customers with excellent creditworthiness at a lower than ordinary market rate.
D) to consumers who do not qualify for ordinary market rates due to a lack of creditworthiness.
E) to consumers with excellent creditworthiness at a zero rate of interest.

Correct Answer:

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