Finance
A Utah lender's 'loan-to-value' and 'debt-to-income' ratios serve as underwriting tools that:
AGuarantee loan approval for qualified borrowers
BMeasure risk to help lenders determine whether to approve a loan and at what terms✓ Correct
CAre set by the Utah Division of Real Estate
DOnly apply to FHA and VA loans
Explanation
LTV measures collateral risk (how much equity protects the lender if the borrower defaults) and DTI measures the borrower's capacity to repay. Together, they help lenders assess credit risk and make lending decisions that comply with secondary market and regulatory standards.
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