A lender notices that 35% of its residential mortgage portfolio consists of loans with LTVs above 90%. Which risk management action is most appropriate?
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A
Immediately sell all high-LTV loans on the secondary market
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B
Purchase private mortgage insurance or increase capital reserves for those loans
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C
Reclassify the loans as commercial to reduce reporting requirements
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D
Lower interest rates on high-LTV loans to incentivize faster payoff