SIE Understanding Products and Their Risks Practice Question 73

Correct Answer: C

Explanation:

C: Choice C is correct because all participants are borrowers and therefore the financial institution will have them all sign the mortgage. Choice A is incorrect because the participants would generally have risk limited to their investment in the transaction with no risk to their personal assets. Choice B is incorrect because all TIC participants sign the mortgage. Choice D is incorrect because no standard mortgage form is used, as a situation may have extenuating circumstances, whereby the lender may require recourse for such things as criminal activities by the borrowers.