Final answer:
While the question specifically asks about the requirement of two written appraisals for a higher-priced mortgage loan, it touches on broader banking practices such as requiring collateral, credit checks, and cosigners to secure a loan. These measures help banks mitigate the risk involved in extending credit, especially in the context of imperfect information about a borrower’s reliability.
Step-by-step explanation:
The question of whether two written appraisals are required before a lender extends a higher-priced mortgage loan to a consumer pertains to the practices and regulations that financial institutions follow when making loans. In the context of the financial capital market, collateral, credit checks, incomes sources, and cosigner requirements are all measures used by banks to mitigate the risk of imperfect information regarding a borrower's ability to repay the loan.
However, this question seems to be referencing specific lending regulations which may vary by jurisdiction and are subject to specific legislative or regulatory requirements, rather than broader financial practices.
It is important for borrowers looking for a loan to be aware that banks typically resort to various means to ensure the repayment of loans, including requiring collateral or a cosigner. The requirement of two written appraisals before extending a higher-priced mortgage loan to a consumer may be a regulatory measure designed to provide an additional level of due diligence and consumer protection, particularly in the case of loans with a higher risk profile.