Supervisory review should also be the part of Subprime Mortgage Lending. It should review:
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A. B. C. D.AC
The term "Subprime Mortgage Lending" refers to the practice of providing mortgages to borrowers who do not meet the standard credit criteria for prime mortgages. Such borrowers are typically considered to be higher risk, and as a result, subprime mortgages often carry higher interest rates and fees than prime mortgages.
Supervisory review is a process that involves the review and analysis of an institution's risk management and compliance processes by regulatory agencies. In the context of subprime mortgage lending, supervisory review is particularly important because of the potential risks associated with this type of lending.
Answer A is correct, as regulatory agencies will continue to focus on risk management review and consumer compliance processes. This means that regulatory agencies will be closely monitoring financial institutions engaged in subprime mortgage lending to ensure that they are effectively managing the risks associated with this type of lending and are complying with all relevant consumer protection laws.
Answer B is not directly related to supervisory review of subprime mortgage lending, although hiring and training of personnel is certainly an important consideration for any financial institution engaged in this type of lending.
Answer C is also correct, as regulatory agencies will take action against institutions that violate consumer protection laws, fair lending laws, or engage in unfair or deceptive acts or practices, or unsafe or unsound lending practices. This underscores the importance of effective risk management and compliance processes in subprime mortgage lending.
Answer D is not a primary concern of supervisory review of subprime mortgage lending, although the applicability of prepayment penalties is certainly an important consideration for financial institutions engaged in this type of lending.