Question: 1 2 . The loan - to - value ratio is an important underwritingcriterion, for the primary reason thata. borrowers with no equity will default

12. The loan-to-value ratio is an important underwritingcriterion, for the primary reason thata. borrowers with no equity will default andabandon the property.b. the lender wants to ensure the loan is fullycollateralized.c. a borrower can only afford to borrow a portion of theentire purchase price.d. a fair amount of borrower equity demonstrates goodfaith.

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