1) How would you define the Housing Expense Ratio? (4 Points)

The share of monthly income that used to pay for a mortgage.

The part of the net income that is used for paying for housing and income taxes.

The share of the monthly gross income used to pay housing related expenses such as mortgage payments, property taxes, and house insurances.

The share of your monthly income covering expenses for mortgages, income taxes, property taxes, retirement and unemployment insurance.

2) Over the last decades, the FICO score became a powerful tool for lenders to determine whether loans can be granted. Automated underwriting processes based on the credit score have mostly replaced more traditional approaches. (2 Points)

True

False