Intro to Mortgage Origination Examinations Training - July 2025

Internal Use Only

Knowledge Check #11

A high percentage of non-performing loans may indicate: A. Strong liquidity

B. High earnings growth C. Excess working capital D. Weak asset quality

Internal Use Only

Knowledge Check #12

Which scenario illustrates high sensitivity to market risk for a mortgage company? A. The company has a diversified loan portfolio B. The company generates most revenue from fixed-rate loans but funds operations with short-term variable-rate debt C. The company maintains a high current ratio D. The company has no off-balance sheet exposures