Finance
Hypothecation in real estate finance means:
AThe property is sold at auction
BThe borrower pledges property as collateral for a loan without surrendering possession✓ Correct
CThe lender takes title to the property at loan origination
DThe property is transferred to a trust
Explanation
Hypothecation is pledging property as loan collateral while retaining possession and use; the lender only takes title through foreclosure if the borrower defaults.
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