Finance
A Virginia lender's underwriter performs 'stress testing' on a borrower's application. This means they are evaluating:
AThe borrower's emotional stability
BThe borrower's ability to continue payments if income decreases or rates increase✓ Correct
CThe property's structural integrity
DThe appraiser's credibility
Explanation
Underwriting stress testing evaluates whether a borrower could maintain payments under adverse scenarios — such as income reduction or interest rate increases for ARMs — to assess long-term risk.
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