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Which statement is correct regarding security taken for residential lending?

a. Security is Not Required for Residential Lending
b. Security is Optional for Residential Lending
c. Security is Always Required for Residential Lending

User Chris Dent
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1 Answer

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Final answer:

c. Security is Always Required for Residential Lending

For residential lending, security in the form of a mortgage is typically always required to protect the lender's investment in case of borrower default.

Step-by-step explanation:

When it comes to residential lending, security is typically required by lenders to protect their investment. This security usually takes the form of a mortgage on the property being financed. So, the correct statement regarding security for residential lending is that it is always required. The lender requires this security to ensure that if the borrower defaults on the loan, the lender can recoup their losses by taking possession of and selling the mortgaged property.

User Zzheng
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