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Provide a brief description (in your own words) of the five risks that affect mortgage interest rates (default, interest rate, prepayment, liquidity, and legislative). Explain

Provide a brief description (in your own words) of the five risks that affect mortgage interest rates (default, interest rate, prepayment, liquidity, and legislative). Explain how a lender might look to mitigate or at least manage these risks.

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1 Default Risk Default risk is the risk that the borrower will fail to make their mortgage payments ... blur-text-image

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