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NEW QUESTION: 1
In a price risk situation if customers withdraw their applications a bank may be unable to originate enough loans to meet its forward sales commitments .Because of this kind of "Fallout" a bank may have to purchase additional loans in the secondary market at prices higher than anticipated. Alternatively, a bank may choose to liquidate its commitment to sell and deliver mortgages by paying a fee to the counterparty commonly called a ______________.
A. None of these
B. Settlement
C. End of loan settlement
D. Pair-off arrangement
Answer: D

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