most of the monthly payment reflects interest payment. most of the monthly payment reflects principal reduction all of the monthly payment reflects principal reduction. Question 38 2.5 pts If a mortgage loan applicant's front-end debt ratio was satisfactory and back-end debt ratio was slightly above the maximum allowed debt to income ratio, the lender would most likely: decline the mortgage loan application without any further discussion with the borrower approve the mortgage loan application as submitted suggest that the borrower find a house that costs less and/or renegotiate the purchase price of the house. o work with the borrower to see if they could pay off some of the borrower's debt. Question 39 2.5 pts is the procedure where an issuer designs a marketable financial instrument by merging or pooling various financial assets into one group. The issuer then sells this group of repackaged assets to investors. Collateralization Valuation Securitization Authentication ho Amortization Question 40 2.5 pts