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NEW QUESTION: 1
Which of the following comes under the heading of nontraditional mortgage product risks?
A. Reduced documentation adds risk to a mortgage loan.Institutions may rely on reduced documentation in the credit underwriting process.Income and credit verification may not be obtained.Use of reduced documentation should be subject to clear policies that require more documentation when the credit risk rises
B. Reduced documentation adds risk to a mortgage loan.Institutions may rely on reduced documentation in the credit underwriting process.Income and credit verification may not be obtained.Use of reduced documentation should be subject to clear policies that require more documentation when the credit risk rises
C. Perform
due diligence before entering into third-party
relationships, including a review of the third party's General competence Business practices and operations Reputation Financial capacity Internal controls Record of compliance with laws
D. Amounts credited as recovery on a loan must not exceed all principal, finance charges, and fees previously charged off. Amounts that exceed these must be credited as income
Answer: A,B

NEW QUESTION: 2
Drag and drop the OTV component on the left to the function it performs on the right.

Answer:
Explanation:

NEW QUESTION: 3
Which of the following are external risk factors?
Each correct answer represents a complete solution. Choose three.
A. Market
B. Geopolitical situation
C. Competition
D. Complexity of the enterprise
Answer: B,C
Explanation:
Explanation/Reference:
Explanation:
These three are external risk factors as they lie outside the enterprise's control.
Incorrect Answers:
B: This includes geographic spread and value chain coverage (for example, in a manufacturing environment). That is why it is internal risk factor.