Origination ActivitiesQuestion 259 of 400
In qualifying an applicant end-to-end, a lender evaluates the 'four Cs.' Which set correctly lists them?
a.Capacity, Credit, Capital, and Collateral
b.Cost, Closing, Contract, and Commission
c.Cash, Coverage, Compliance, and Contingency
d.Charge, Cushion, Cap, and Carryback
Explanation
Traditional underwriting evaluates the four Cs: Capacity (ability to repay), Credit (history), Capital (assets/reserves), and Collateral (the property). The other lists are not the recognized underwriting framework.
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