Finance
A Virginia lender who uses 'risk-based pricing' charges higher interest rates to borrowers with:
AHigher income levels
BLower credit scores or higher LTV ratios, reflecting greater default risk✓ Correct
CInvestment property loans only
DFHA-insured loans
Explanation
Risk-based pricing adjusts interest rates and fees based on the borrower's credit profile (credit score, LTV, debt-to-income ratio) to compensate the lender for higher predicted default risk.
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