Under what method of underwriting does an underwriter assign positive rating points for all negative or adverse factors (negative points for any positive or favourable factors)?

The correct answer is A. Judgment.

Judgment underwriting is a method of underwriting in which the underwriter assigns positive rating points for all negative or adverse factors (negative points for any positive or favorable factors). The underwriter then uses these points to determine the riskiness of the loan and the interest rate that should be charged.

Arbitrary underwriting is a method of underwriting in which the underwriter assigns a rating to the loan based on their own judgment. There is no set criteria for this type of underwriting, and the underwriter may use their own personal experience or intuition to make the decision.

Numerical rating underwriting is a method of underwriting in which the underwriter assigns a numerical rating to the loan based on a set of criteria. The criteria may include factors such as the borrower’s credit score, debt-to-income ratio, and employment history. The underwriter then uses this rating to determine the riskiness of the loan and the interest rate that should be charged.

Single step underwriting is a method of underwriting in which the underwriter makes a decision about the loan based on a single factor, such as the borrower’s credit score. This is the simplest type of underwriting, but it is also the least accurate.

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