Intro to Mortgage Origination Examinations Training - July 2025

Internal Use Only

Knowledge Check #7 Which of the following best describes liquidity risk for a mortgage company? A. The risk of being unable to meet short-term financial obligations B. The risk of default on long-term debt C. The inability to generate sufficient profit to cover expenses D. The possibility of asset devaluation due to market changes

Internal Use Only

Knowledge Check #8

Which financial ratio is most used to assess a company’s liquidity? A. Debt-to-equity ratio B. Return on assets C. Current ratio D. Gross profit margin