A compared to fixed rate mortgage ARMs result. In which of the following for the lender? $1.$ higher interest rate risk, $2.$ lower default risk $3.$ greater prepayment penalty fees. A$.1,2,$and $3$B$\mathrm{.}1$ and $3$ only C$.2$ and $3$ only D$\mathrm{.}1$ and $2$ only E$.$ None of these choices are correct.