Property Ownership

In Ohio, 'collateral' in a mortgage transaction is:

AThe borrower's income used to qualify for the loan
BThe real property pledged as security for the mortgage loan✓ Correct
CThe co-signer's liability for the loan
DThe lender's underwriting criteria

Explanation

Collateral is the asset pledged as security for a loan. In a mortgage, the real property is the collateral — if the borrower defaults, the lender can foreclose on the property.

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