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The QTL test requires that thrifts: invest in a minimum percentage of government-backed securities to protect their mortgage loans. lend no more than 80 percent
The QTL test requires that thrifts:
invest in a minimum percentage of government-backed securities to protect their mortgage loans.
lend no more than 80 percent of the value of a home to a borrower to ensure mortgage safety.
limit the amount of mortgage-related assets on the balance sheet to improve diversification.
invest at least 65 percent of their assets in mortgages or mortgage-related assets.
keep 35 percent of their assets in safe liquid investments to ensure adequate deposit liquidity.
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