Which of the following descriptions of borrower qualifications will result in the highest charge for a Loan Level Price Adjustment? 642 Representative credit score and 95.00% LTV r... Which of the following descriptions of borrower qualifications will result in the highest charge for a Loan Level Price Adjustment? 642 Representative credit score and 95.00% LTV ratio, 775 Representative credit score and 97% LTV ratio, 725 Representative credit score and 57% LTV ratio, 690 Representative credit score and 75% LTV ratio.
Understand the Problem
The question is asking to identify which combination of credit score and loan-to-value (LTV) ratio will lead to the highest charge for a Loan Level Price Adjustment. This involves evaluating the four given options to determine their impact on costs based on credit criteria.
Answer
642 Representative credit score and 95.00% LTV ratio.
The highest charge for a Loan Level Price Adjustment is associated with the 642 credit score and 95.00% LTV ratio.
Answer for screen readers
The highest charge for a Loan Level Price Adjustment is associated with the 642 credit score and 95.00% LTV ratio.
More Information
The combination of a low credit score and a high loan-to-value (LTV) ratio typically results in higher charges for Loan Level Price Adjustments because they indicate a higher risk to the lender.
Tips
A common mistake is to only focus on either the credit score or the LTV ratio, while both factors significantly influence the charges.
Sources
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