3. Mortgage lenders almost always escrow for taxes in addition to collecting principal and interest (a) because they want to protect against newly filed IRS Liens (b) because the monies collected through the escrow eam no interest (c) because they are required to do so by law (d) because real estate taxes lines can be sold to eager investors (e) because of none of the above (f) all of the above 4. An upside-down mortgage is most likely to occur when (a) market rates of interest plummet (b) real estate prices remain stable (c) a local area loses major sources of employment (d) both (b) and (c) (e) underwriting guidelines are eased (f) none of the above 5. The market approach weighs most heavily in a residential appraisal because (a) it is impossible to know the true cost of an older dwelling (b) the income approach cannot include the revenues generated by illegally rented basements (c) the income approach always underestimates rents paid in cash (d) the market approach can be manipulated by adjusting the radius of the market most one family houses are owner-occupied and not rented for income none of the above