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Basic Question 5 of 6

Which statement is FALSE?

A. The recourse/non-recourse feature of a mortgage has implications for projecting the likelihood of defaults by borrowers.
B. Borrowers almost always favor non-recourse mortgages.
C. In a non-recourse mortgage, the lender is not allowed to seize the underlying property when the borrower fails to make contractual payments.

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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe fundamental features of residential mortgage loans that are securitized

CFA® 2025 Level I Curriculum, Volume 4, Module 19.