Which of the following is FALSE regarding ARM loans? Group of answer choices Lenders only...
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Finance
Which of the following is FALSE regarding ARM loans?
Group of answer choices
Lenders only originate ARMs if the expected benefit from shifting interest rate risk is greater than the increased risk of borrower default caused by adjusting composite rates
ARMs with more frequent adjustments to the composite rate are more risky to lenders than ARMs with less frequent adjustments
none of the answer choices is FALSE
ARMs with shorter term index means increased risk to borrower because shorter term index rates have more volatility
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