Finance
Which of the following is the most accurate description of 'underwriting' in mortgage lending?
APrinting and distributing the loan documents
BThe process of assessing the borrower's creditworthiness and the property's value to determine if the loan meets lender criteria✓ Correct
CMarketing the loan to investors in the secondary market
DSetting the interest rate based on market conditions
Explanation
Mortgage underwriting is the analysis and verification process by which the lender evaluates the three C's — credit (creditworthiness), capacity (ability to repay), and collateral (property value) — to determine whether to approve the loan.
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