Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?

Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?
A . Borrowers may not sign all required mortgage loan documentation.
B . Fees paid by the borrower at the time of the loan may not be deposited in a timely manner.
C . The bank’s loan documentation may not meet the government’s disclosure requirements.
D . Loan officers may override the lending criteria established by senior management.

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Answer: D