Finance
What is 'underwriting' in the mortgage lending process?
AWriting the contract terms between buyer and seller
BThe lender's process of evaluating a loan application to determine the borrower's creditworthiness and loan risk✓ Correct
CPreparing the closing disclosure and settlement statement
DObtaining title insurance for the lender
Explanation
Underwriting is the risk assessment process in which the lender reviews the borrower's creditworthiness (credit, income, assets) and the property's value to determine whether to approve the loan and under what terms.
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