Fixed Income Q70

70Which of the following statements about LTV is least accurate?

A
LTV is the ratio of the mortgage loan amount to the property’s purchase price.
B
Lower the LTV, the more likely the borrower is to default.
C
Lower the LTV, the more protection the lender has for recovering the amount loaned if the borrower defaults.

Option : B
Explanation : Lower the LTV, the less likely the borrower is to default.

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