Finance
What is 'credit enhancement' in Rhode Island real estate lending?
AImproving a borrower's credit score
BMechanisms (mortgage insurance, letters of credit, co-signers) that reduce lender risk and improve loan terms for the borrower✓ Correct
CA DBA loan program
DA government grant for property improvements
Explanation
Credit enhancement reduces the lender's risk and may improve loan terms. It includes mortgage insurance (PMI/MIP), letters of credit, guarantees, co-signers, and government guarantees (FHA, VA, USDA), all of which provide additional assurance to lenders.
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