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Mortgage bank - SS2 Commerce Past Questions and Answers - page 1

1

What is the primary focus of a mortgage bank?

A

Offering investment services

B

Providing insurance policies

C

Facilitating real estate transactions

correct option: c

Facilitating real estate transactions

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2

What is the main function of a mortgage bank?

A

Collecting monthly mortgage payments

B

Collecting monthly mortgage payments

C

Offering financial advisory services

correct option: a

Collecting monthly mortgage payments

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3

What is securitization in the context of a mortgage bank?

A

The process of evaluating creditworthiness

B

What is securitization in the context of a mortgage bank?

C

The process of evaluating creditworthiness

correct option: b

What is securitization in the context of a mortgage bank?

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4

How do mortgage banks determine the interest rate for a mortgage?

A

Based on the borrower's income level

B

Determined by the current market conditions

C

Randomly assigned by the bank

correct option: b

Determined by the current market conditions

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5

What role does a mortgage bank play in the mortgage process?

A

Evaluating the creditworthiness of borrowers

B

Assisting borrowers with home improvement projects

C

Evaluating the creditworthiness of borrowers

correct option: c

Evaluating the creditworthiness of borrowers

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6

State one function of a mortgage bank.

Collecting monthly mortgage payments

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7

What is securitization in the context of a mortgage bank?

The sale of mortgage loans to investors.

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